Can I apply for HNI quota via UPI transaction for the LIC IPO? I got a message that it will be enabled for Paytm Money customers?

That is correct. Before the LIC IPO opens, Paytm Money has promised to enable HNI bids up to Rs.5 lakhs for the IPO under the UPI mechanism. It may be recollected that specifically in the case of LIC IPO, the regulator is increasing the UPI limits from Rs.2 lakhs to Rs.5 lakhs. SEBI had issued this circular on 05-April 2022, raising the limit to Rs.5 lakh through NPCI UPI as against the previous limit of Rs.2 lakh effective from post 01st May 2022.

This would make Paytm Money the first low-cost broker in India to permit high net worth investors to place higher bids up to Rs.5,00,000 via UPI, without going through Bank ASBA flows. In fact, the addition of the HNI investor category on the Paytm Money app will permit to place higher IPO bids through NPCI UPI. Actually, this has the potential to be a major driver of demand for the IPO.

Paytm Money currently has 8.5 lakh trading accounts plus a total of 90 lakh registered direct mutual fund investors. What is more interesting is that their customer profile is largely millennial with over 75% of users on the platform below the age of 35. Paytm Money has total assets under management (AUM) of Rs.11,000 crore, and the broker reports average daily turnover of more than Rs.70,000 crore.