Securities and Exchange Board of India has devised a new payment system for the retail investors investing in the Initial Public Offers of Indian companies.
This new system will help retail investors a lot as it will not block their application money till the shares has been allotted to them.
This new system will not be implemented immediately but will be run on a pilot basis to check the efficiency of the system. Once it has been launched on a pilot basis it will give a lot of feedback to the Securities and Exchange Board of India and thus from the feedback this system can be made fool proof and free of glitches.
Securities and Exchange Board of India plans to launch this new payment system by August end but beside this new system the old system will also run side by side.