Sebi Clarifies Rules: 3-in-1 Accounts for Debt Securities Applications

Sebi clarified that investors can use 3-in-1 accounts to apply online for public issues of debt securities and related financial instruments, alongside existing application modes. The decision followed feedback on the need for this specification. A new trading facility via the UPI block mechanism will also be available from 2025.

The Securities and Exchange Board of India (Sebi) has announced that investors may continue to utilize 3-in-1 accounts for applying online for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitised debt instruments. This will be in addition to the existing modes available for applications.

The clarification follows feedback received by Sebi, indicating the necessity of explicitly specifying the usage of 3-in-1 accounts for such applications. These accounts combine a savings account, a demat account, and a trading account, allowing funds to remain in the bank account, earning interest on cash balances.

Additionally, starting February 1, 2025, Sebi-approved new trading modes will be available through the UPI block mechanism and 3-in-1 trading accounts, offering alternative options for trading in the secondary market without upfront fund transfers.

(With inputs from agencies.)