New Trading Options Enhance Investor Security and Convenience

Starting February 1, 2025, qualified stock brokers must provide either a UPI-based block mechanism or a three-in-one trading account facility. This aims to empower investors with better security, transparency, and convenience. The move supports efficient fund management and offers alternatives to existing trading methods.

Starting February 1, 2025, qualified stock brokers will be required to offer their clients either the UPI-based block mechanism for secondary market trading or a comprehensive three-in-one trading account. This move aims to empower investors by providing enhanced security, improved transparency, and greater ease in making payments, thereby reflecting the growing adoption of UPI payments.

Rahul Jain, CFO of NTT DATA Payment Services India, emphasized that the initiative will bring significant benefits to investors, including interest earnings and improved fund management. The ability to create a payment mandate by blocking funds for trading would further secure investor funds from misuse.

The markets regulator SEBI has mandated this change, following the success of the UPI block mechanism for public issues since January 2019. While this facility remains optional for investors and trading members, it signifies a notable shift towards modernizing and securing trading operations.

(With inputs from agencies.)