SEBI Mandates New Payment Options For Brokers Starting Feb 2025. Here’s What You Need To Know
The Securities and Exchange Board of India (SEBI) instructed qualified stock brokers (QSBs) to provide trading facility in the secondary market using the UPI-based block mechanism to their clients. This mechanism is similar to the ASBA facility.
The capital markets regulator announced the changes in a board meeting on September 30, 2024. These new changes would be effective from February 1, 2025. The UPI block facility would basically allow investors to trade in the secondary market on the basis of funds blocked in their bank accounts, rather than transferring it upfront to the trading member.
Further, the brokers have been asked to provide a three-in-one trading account facility to investors. The account is basically a combination account that includes a savings account, demat account, a...