Sebi Mandates UPI Trading & 3-in-1 Accounts

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@siva When you will implement for us

Sebi Mandates UPI Trading & 3-in-1 Accounts for QSBs

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By Rediff Money Desk, New Delhi Nov 11, 2024 19:27

Sebi has directed qualified stock brokers (QSBs) to offer UPI-based block trading or 3-in-1 accounts to investors from February 1, 2025. This move aims to improve investor convenience and access to financial markets.

Sebi Mandates UPI Trading & 3-in-1 Accounts for QSBs

Photograph: Francis Mascarenhas/Reuters

New Delhi, Nov 11 (PTI) Markets regulator Sebi on Monday asked qualified stock brokers to offer either the facility of trading in the secondary market using the UPI-based block mechanism to their clients similar to the ASBA facility or a three-in-one trading account facility from February 1.

These qualified stock brokers brokers (QSBs) must offer one of these two options, in addition to the current mode of trading.

The three-in-one trading account combines a savings account, a demat account, and a trading account into a single integrated solution. In this case, the clients would have their funds in their bank account, earning interest on the cash balances.

The direction came after the Sebi board approved a proposal in this regard in its board meeting in late September.

“In addition to the current mode of trading, the Qualified Stock Brokers shall provide either the facility of trading supported by the blocked amount in the secondary market (cash segment), using UPI block mechanism or the 3-in-1 Trading Account facility, to their clients,” Sebi said in a circular.

Clients of the QSBs will have the option to either continue with the existing facility of trading by transferring funds to a trading member or opt for either of these facilities.

Trading members ™ are classified as QSBs based on factors like the size and scale of their operations, including the number of active clients, the total assets held by clients with the TM, the end-of-day margin of all clients, and the trading volume of the TM.

The move, aimed at significant potential benefits to investors, will come into effect from February 1, 2025.

In the UPI block mechanism, clients can trade in the secondary market based on blocked funds in their bank accounts instead of transferring the funds up

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@mohitmehra Can you.

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Stockbrokers will have the option to offer either 3-in-1 accounts or UPI ASBA. QSBs are required to offer one of the two from 1st Feb onwards. We are developing the systems to be ready by then. Since 3-in-1 has more external system dependencies, we are working on the UPI ASBA route at present.

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Icici Direct has been providing this facility.

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Are you aware of any limitations (max/min) on amount of funds for UPI Block?

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Max 3 blocks per day, each block will have a max cap of Rs. 5 lakhs. There is no limit on the total number of blocks that can exist at any time.

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This block can be used only for equities or even fno trading as well?

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What if I don’t have the UPI on my linked bank account ?

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Then how you will setup UPI mandate. Just do normal transfer like you’re doing now

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@siva can you share official circular link here ?

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You can check here.

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Is this facility only for equity or for FnO as well? @Ragavendran_M

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As of now its for equity segment.

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The offering will be available but it isnt mandatory for an investor to only use this method. You can continue using the normal route to transfer funds.

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is it SEBI wants to dismantle Brokerage system? or the Private bank Lobby wants to get rid of Discount brokerages?

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Looks like the latter