Qualified brokers to provide clients UPI block or 3-in-1 trading account from February 1

SEBI has asked qualified stock brokers (QSBs) to provide their clients trading supported by blocked amount in the cash segment using the UPI block mechanism or the 3-in-1 trading account, in addition to the current mode of trading, from February 1.

The QSBs’ clients will have the option to either continue with the existing facility of trading by transferring funds to the brokers or opt for either of the facilities.

The 3-in-1 trading account facility will have the following features. The integration of the trading account with demat and bank accounts of the client; blocking of funds on placement of buy orders; blocking of securities in the demat account of the client on placement of sell orders and pay-in (transfer of funds or securities) blocked at the time of order placement upstreamed to the clearing corporation. The client earns interest on the available funds till the pay-in.