Sebi's move to allow UPI route for IPO payments faces teething problems

The proposed process aims to increase efficiency, eliminate the need for manual intervention, and reduce the duration from issue closure to listing by up to three working days

The Securities and Exchange Board of India’s (Sebi’s) move to introduce a new payment system to bring down listing time is facing teething problems. Starting January 2019, Sebi has allowed retail investors to make initial public offering (IPO) payments through Unified Payments Interface, or UPI. Currently, the UPI payment option is optional, along with the so-called application supported by blocked amount (Application Supported by Blocked Amount or Asba) facility. 

While around 60 banks currently offer the Asba facility, only three banks have adopted UPI as a payment mechanism. 

Sources say the market regulator has reached out to banks, investment bankers,