Sebi mandates qualified stock brokers gives either ASBA-like facility or 3-in-one account for secondary-market investors

With UPI like facility, investors can block an amount for trading in their bank accounts.

The market regulator has mandated that qualified stock brokers either provide UPI-block mechanism, or ASBA like facility for secondary market, or the three-in-one trading account facility from February 1, 2025.

A three-in-one trading account is a combination account that has a savings account, demat account and trading account.

After meeting with its Board on September 30, the Securities and Exchange Board of India (Sebi) issued a press statement to this effect. The regulator said that clients can either choose these options or  continue with the existing facility of trading by transferring funds to Trading Members (TMs).

The press release stated:

"One of the two facilities to be mandatorily offered by Qualified Stock Brokers (QSBs) and other incidental matters."
It added, "Taking into account the feedback of various stakeholders and keeping in view the significant potential benefits to investors, the Board has approved that –
1.1 In addition to the current mode of trading, the Qualified Stock Brokers (QSBs) shall provide either the facility of trading supported by blocked amount in the secondary market (cash segment) using UPI block mechanism (ASBA like facility for the secondary market) or the 3-in-1 Trading Account facility, with effect from February 1, 2025."

1.2 Clients of the QSBs will have the option, to either continue with the existing facility of trading by transferring funds to Trading Members (TMs) or opt for the facility stated at Para 1.1 above, as provided by the QSB.

(This article will be updated.)