Sebi approves Paytm UPI handle for IPO applications

The move will enable fast and seamless payment mandates for IPO applications

Digital payments firm Paytm Payments Bank on Monday said Securities and Exchange Board of India has approved Paytm UPI handle to enable fast and seamless payment mandates for IPO applications.

Paytm Payments Bank (PPBL) has also entered into a partnership with Paytm Money to enable payment mandates for IPO applications. Paytm Money has the aim to bring 10 million Indians to equity markets by the financial year 2022.

"By enabling @paytm UPI to apply for IPO, we are giving millions of investors the ease of seamless, secure, and rapid payments to help enhance their financial portfolio.

"We believe that every Indian has a right to access capital markets and benefit from the burgeoning list of successful companies which are listing in the stock market," PPBL MD and CEO Satish Gupta said in a statement.

As per the latest NPCI report, it registers the lowest technical decline rate of 0.02 per cent compared to all UPI remitter banks, and 0.04 per cent against all UPI beneficiary banks, the company said in a statement.

Paytm's stockbroking platform aims to open over 3.5 lakh Demat accounts by year-end and expects 60 per cent of users to be from small cities.

"Besides Paytm Money, @paytm UPI will soon be activated across all brokerage platforms. The ease of making payments seamlessly in a secure manner will help in promoting IPOs as a wealth product and encouraging more new users to begin their journey in building a healthy portfolio," the statement said.

From the financial year 2021, the country's stock exchanges witnessed around 24 IPOs and raised proceeds worth Rs 48,493 crore from the capital markets.

"The IPO market is expecting to have many big names come to the retail market for new offers like Zomato, LIC, Kalyan Jewelers and many more," the statement said.