The significance of validating the IPO mandate is so great that failing to do so could undermine all of your company-related research. As a result, you will consequently miss the IPO.
UPI’s role in transferring money, paying bills, and making purchases may be known to you. Wherever you are, whenever you want, you can do it using your mobile phone. However, did you know that UPI can be used to submit an IPO application?
SEBI has mandated retail investors to use UPI to invest in IPOs when applying through registered brokers, DPs (depository participants), and RTAs (Registrar and transfer agents). If you reject or miss the UPI mandate request, your IPO application will be rejected. To help you avoid such a situation, we have detailed the process of finding an IPO mandate on service provider platforms like Google Pay, Phone Pe, Paytm, and Bhim UPI.
How to Find UPI Mandate in UPI Platforms?
Gpay generally notifies you upon successfully setting a UPI mandate when submitting your IPO application through Angel One. However, you can follow these steps to double-check:
1. Select the profile option on the top-right corner of the home screen and scroll down to find Mandates.
2. Look for autopay in the pending section. Click on the autopay to authorise. Accept the autopay request by entering the UPI PIN to validate the application.
3. The live section in mandates allows tracking the mandate after its adoption.
- Once you receive the autopay approval request, go to the Phonepe app. You will be able to see a pop-up message of the autopay request. Click on ‘View Details’.
2. After verifying all the details, click ‘Accept’ to approve the mandate. The IPO application amount will be blocked in your account and debited once the shares have been allotted to you. The IPO dashboard on Angel One has a link where you may monitor the allotment status.
You are required to go to the Paytm app to finish the mandate block if you selected a UPI ID that is linked to the Paytm app. The steps have been explained below:
1. Click on the notification stating the mandate request for the IPO applied.
2. Now, check the details and verify and accept the mandate request to successfully subscribe to the IPO.
1. When using the BHIM app to pay the UPI mandate, you must launch the app and look for the Mandates area, often shown on the home screen.
2. Here, you’ll see all the mandates listed and their details. Select the applicable one and click on proceed.
Now that you know know to check for the IPO mandate request in different applications, here’s a brief on UPI mandate basics for the uninitied.
What is UPI?
UPI is an instant payment system created by the National Payments Corporation of India (NPCI). The UPI has been a revolution in the payment industry, whereby instant transfer of funds between the bank accounts of any two parties is possible. However, you must have a UPI ID first before using it. It is a digital payment ID used to transfer and receive money straight from/into your bank account.
What is the use of UPI ID for Applying for an IPO?
You can use your UPI ID as a payment method while submitting an IPO application on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) . You must instruct your broker to utilise your UPI ID to submit the IPO application. Post submission, accepting the UPI mandate received on your UPI application is important to subscribe to the IPO successfully.
What is the UPI Mandate?
You can approve one-time or recurring payments with the help of a UPI Mandate (also known as autopay or e-mandate). The money will be deducted from your account at the specified time for which it has been scheduled. To set up a UPI Mandate, the service provider must be permitted to deduct the money from your bank account.
When the mandate has been raised for the IPO, your bank account is prevented from using the money but it still appears in your main account balance. Think of it as money blocked or reserved to pay for the IPO subscription in case you are allotted shares. If you receive the allotment, the money will be debited from the account. If not, the amount will be unblocked.
Benefits of Using UPI for IPO Application
- Using UPI payments carries no additional fees.
- You can request a prompt refund by contacting the payment gateway’s customer service team if any transactions fail or there are any technical difficulties.
- The payment gateways inform you of your UPI activity and regularly send notifications and alerts.
Consequences of Not Accepting IPO Mandate
As discussed earlier, not accepting the IPO mandate can result in the rejection of your IPO application. And in case you mistakenly reject the mandate request, the transaction will be rejected, and you will need to submit a new request.
What happens if I don't receive an IPO mandate?
In most cases, the mandate SMS or notification is sent out shortly after the application is submitted. But occasionally, there can be a delay because of NPCI technical problems. After 6hours of putting in your offer, you might need to reapply if you still have not gotten an SMS or notification for the amount blocking.
Will I get my money back if IPO is not allotted?
After the distribution of shares, the funds are unblocked. However, some banks won’t release the funds until the mandate expires.
Can I cancel the IPO after accepting the mandate?
An IPO application cannot be cancelled after the closing date by investors. Retail investors, employees, and shareholders with offer values up to ₹2 lakh are the only parties that may cancel an IPO bid during the IPO bidding window.
Can I accept the IPO mandate after 5 PM?
According to the Exchange notification, the mandate acceptance time expires at 5 PM on the IPO closing day.
Can the UPI mandate be cancelled?
Terminating the IPO/UPI mandate denotes the withdrawal or revocation of the application. The bank will remove the money block once you withdraw your IPO application. The block is often lifted within 24 hours. This time frame, though, could differ from one bank to another.