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Sebi: The market regulator has asked QSBs to offer their clients the facility of trading in the secondary market using the UPI-based block system or a 3-in-1 trading account similar to the ASBA facility from February 1.

Sebi: There is big news for those who trade in the stock market. Market regulator Sebi has issued a circular on making UPI based transactions mandatory. There is a SEBI circular on making it mandatory for buying and selling shares. SEBI has asked big brokers to provide 3 in 1 or ASBA facility in the cash segment. Big brokers have been instructed to follow the rule from February 1, 2025.

Big brokers have been instructed to follow the rule from February 1, 2025

Market regulator Sebi has asked qualified stock brokers (QSBs) to offer their customers the facility of trading in the secondary market using the UPI-based block system similar to the ASBA facility or a ‘three-in-one’ trading account from February 1. These QSBs will have to offer one of these two options in addition to the existing method of trading.

The ‘three-in-one’ trading account combines a savings account, a demat account and a trading account. In such a situation, the remaining amount will be with the customers in their bank account, and they will get interest on the cash balance. The SEBI board approved a proposal in this regard in its board meeting in late September.

QSB customers will have the option to either continue the existing facility of trading by transferring funds to the trading member or choose any of these facilities. In the UPI block mechanism, customers can trade in the secondary market based on the funds blocked in their bank accounts instead of transferring funds in advance to the trading member.