Sebi mandates UPI-based block mechanism, 3-in-1 account facility for qualified stock brokers from February 1

In a transfer geared toward enhancing investor comfort, markets regulator Sebi has directed certified inventory brokers (QSBs) to offer two new choices for buying and selling beginning February 1, 2025. The brand new choices embody a UPI-based block mechanism for secondary market buying and selling or a three-in-one buying and selling account facility, which integrates a financial savings account, demat account, and buying and selling account into one resolution.

This directive, outlined in a round launched by Sebi, comes after the board authorized the proposal in late September. It mandates that QSBs, along with the present modes of buying and selling, should provide both the UPI-based block mechanism or the three-in-one account facility to their purchasers.

Below the UPI block mechanism, purchasers will be capable to commerce within the secondary market utilizing blocked funds from their financial institution accounts, eliminating the necessity to switch funds upfront to the buying and selling member. In the meantime, the three-in-one account facility permits purchasers to have their funds in a financial savings account, incomes curiosity on the stability, whereas additionally linking it to their buying and selling and demat accounts.

Sebi’s initiative goals to offer better flexibility and comfort to buyers, enabling them to handle their funds extra effectively. The brand new measures can be efficient from February 1, 2025, and can provide purchasers the choice to both proceed with the present facility or go for the brand new choices.

Certified inventory brokers (QSBs) are chosen based mostly on elements corresponding to the dimensions and scale of their operations, variety of lively purchasers, whole shopper belongings, and buying and selling quantity.