An ASBA-like facility for investors to trade in the secondary market was approved by the SEBI board. Stock representatives will actually want to settle business installments straightforwardly with UPI clients under the proposed system, or they can decide to utilize the CC office to deduct the standard pace of financier from the clients’ UPI block. Investors and stock brokers alike will have the option of using a facility like ASBA, according to SEBI.
“The broad framework for Application Backed by Blocked Amount (ASBA) has been approved by the Board, such as making it easier for investors to trade on the secondary market. Sebi stated in a statement, “This facility is based on blocking funds for trading in the secondary market through UPI.”
According to SEBI, “Furthermore, it will bring efficiency in the secondary market ecosystem by allowing use of same blocked amount for margin and settlement obligations, resulting in lower working capital requirements for members.”
SEBI says that the framework will be put into place in stages to make the market transition easier.