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The facility is based on blocking of funds for trading in the secondary market through UPI, and initially, the facility will be optional for investors as well as stock brokers. The facility has been initially rolled out for the equity cash segment.

The move follows markets regulator Sebi allowing the facility through the UPI app developed by the National Payment Corporation of India (NCPI).

Investors can block specific amount for multiple debit transactions for trading in the stock market through the mechanism

The move follows markets regulator Sebi allowing the facility through the UPI app developed by the National Payment Corporation of India (NCPI).

​A stupendous run during the last week of 2023 saw benchmark indices giving a strong breakout on the upside and clocking nearly 2% gains.

This rise in retail investors, which can be evidenced through the jump in SIP collection in the last 3 years has directly benefited discount brokers. Currently, discount brokers hold a cumulative market share of ~60 percent, a significant jump from their previous share of ~11 percent in FY18.

The facility is based on the blocking of funds for trading in the secondary market through UPI, and initially, the facility will be optional for investors as well as stock brokers, SEBI had said.

UPI is now the most popular payment method for IPO applications, cornering around two-thirds of the market share

Yearender 2023: The Securities and Exchange Board of India (Sebi) changed its regulatory architecture, made significant changes across asset classes and initiated radical reforms.

Under the proposed settlement mechanism for stock trades, investors funds will effectively leave their bank accounts only after trades are completed. This will eliminate the need to transfer funds to the stockbroker. Also, investors will do direct settlement with the clearing corporation of the stock exchanges.