In a move aimed at improving investor convenience, market regulator Sebi has directed qualified stock brokers (QSBs) to offer two new options for trading from February 1, 2025. New options include a UPI-based blocking mechanism or three blocking mechanisms for secondary market transactions. -in-one trading account function. Consolidate your savings account, demat account, and trading account into one solution.
The directive, outlined in a circular issued by Sebi, was announced after the board approved the proposal in late September. This mandates that QSBs offer either a UPI-based blocking mechanism or a three-in-one account facility to their customers in addition to their current trading modes.
Under the UPI blocking mechanism, customers can trade in the secondary market using blocked funds from their bank accounts, eliminating the need to forward funds to trading members. Meanwhile, the 3-in-1 account feature allows customers to store funds in a savings account and earn interest on their balance, while also linking that balance to a trading or direct debit account.
Sebi’s initiative aims to provide flexibility and convenience to investors and enable them to manage their funds more efficiently. The new measures will come into force from February 1, 2025, giving clients the option of continuing with their existing facilities or choosing new options.
Qualified Stock Brokers (QSBs) are selected based on factors such as size and scale of operations, number of active clients, total client assets, and trading volume.
