New rules have been introduced by the Securities and Exchange Board of India (SEBI)

Current Context: The Securities and Exchange Board of India (SEBI) introduced new rules on September 26, 2024.

• These rules include a fixed price mechanism for voluntary delisting of shares, aimed at simplifying the delisting process for companies.
• UPI Mandatory for Public Debt Issues: Starting from November 1, 2024, investors applying for public issues of debt securities through intermediaries must use UPI for bids up to ₹5 lakh. This aims to streamline the process and align it with the existing procedures for equity shares.
• Fixed Price Mechanism for Voluntary Delisting: SEBI has introduced a fixed price mechanism for voluntary delisting of shares, providing an alternative to the reverse book-building process. This change is intended to simplify the delisting process for companies.

Question:

1 What is the maximum bid amount for which UPI will be mandatory for public debt issues starting November 1, 2024?

• A) ₹5 lakh
• B) ₹2 lakh
• C) ₹4 lakh
• D) ₹10 lakh

Answer: A) SEBI has mandated the use of UPI for bids up to ₹5 lakh for public issues of debt securities starting November 1, 2024.