The Security and Exchange Board of India (SEBI) granted more time to implement the guidelines for SMS alerts under the Unified Payment Interface System (UPI) for actions applied and assigned during an introduction in stock exchange.

At the same time, the deadline for setting up an automated web portal for Initial Public Offers (IPO) via the UPI system was also extended by SEBI. The extension was announced by SEBI after stakeholders approached the regulator to request additional time to implement system changes following uncertainty due to the COVID-19 pandemic.

In a circular issued on Wednesday, SEBI said the new rules for automated web portals will come into effect from October 1, 2021 while the rules for SMS alerts will be effective from January 1, 2022. Earlier, the new arrangement was planned. from May 1, 2021 for the next IPOs.

Commenting on SMS alerts, SEBI said the Self Certified Syndicate Bank (SCSB) will need to continue sending SMS alerts during the actual block / debit / unblock of the Unified Payment Interface (UPI) mandate in the prescribed format. Details regarding the total number of applied, allocated or unallocated shares will be included in the SMS for the opening of public issues from January 1, 2022, the regulator said.

SEBI has prescribed a web portal that will be hosted by sponsor banks for Closed User Group (CUG) entities to facilitate business. SEBI said the portal should have details on statistics for locks / unblocks of warrants, application performance and UPI handles, network downtime / latency (if applicable) between intermediaries.

According to the regulator, such processes will affect the IPO bidding process.

For exceptional cases such as technical problems with UPI identifiers, it will be immediately reported to CUG entities in order to facilitate the flow of information in the public issuance process.

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