Sebi Mandates Innovative Trading Options for Investors

The Securities and Exchange Board of India (Sebi) announced that qualified stock brokers must offer either UPI-based block mechanics or a three-in-one trading account to clients by February 2025. This initiative aims to enhance trading options and benefits for investors in the secondary market.

The Securities and Exchange Board of India (Sebi) has issued a directive requiring qualified stock brokers to offer new trading facilities from February 1, 2025. Brokers must provide either a UPI-based block mechanism or a comprehensive three-in-one trading account as alternatives to the existing trading practices.

The three-in-one trading account integrates a savings account, demat account, and trading account, allowing clients to maintain their funds in their bank accounts while earning interest. This follows Sebi's board approval in September to expand investor options.

Additionally, clients can opt for the new trading facilities while retaining the choice to use traditional methods, as brokers are categorized as Qualified Stock Brokers based on their operational scale and client assets.

(With inputs from agencies.)