The Securities and Exchange Board of India (SEBI) has authorized a complete framework of Application Supported by Blocked Amount or ASBA-like facility to be made available to investors for secondary market trading.
According to an announcement issued by SEBI following its board meeting, the facility is predicated on the barring of funds for trade in the secondary market via UPI.
Both stock brokers and investors would have the opportunity to use the facility. The framework intends to provide benefits including interest on blocked funds held in a client's savings account until the time the amount is debited.
According to the framework, payments will be made directly to the clearing organisation without going via intermediaries' pool accounts.
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