The second phase of Unified Payments Interface (UPI) mechanism as an alternative for retail investors to buy shares in a public issue will be effective from July 1.
In a circular on Friday, Sebi said with the implementation of the second phase, the existing process of submitting bid-cum-application form with intermediary and the movement of application forms from intermediaries to self-certified syndicate banks for blocking funds will be discontinued.
Instead, "for such applications only the UPI mechanism would be the permissible mode," it added.
In November, the regulator said it would launch UPI as an alternative payment option for retail investors to buy shares in a public issue in a phased manner from January 1, 2019, a move that will cut listing time for an IPO to three days from six.
The implementation date was extended till June 30, 2019 to ensure smooth transition to UPI in Application Supported by Block Amount (ASBA).
"In Phase II, the existing timeline of T+6 days will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later. The implementation of Phase III shall continue unchanged ... from the date of completion of Phase II," Sebi said.