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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Trading supported by Blocked Amount in Secondary Market

11-Nov-2024 | SEBI/HO/MRD-PoD2/CIR/P/2024/153

SEBI has issued a circular regarding Trading supported by Blocked Amount in Secondary Market, effective from 1st February 2025.

By virtue of this circular, the salient features of 3-in-1 trading account are specified, which are as follows-
1. Integration of the trading account with the demat and bank accounts of the client.
2. Blocking of funds, to the extent of the obligation, in the bank account of the client on placement of buy orders. In case the buy orders are not executed the funds blocked are released.
3. Blocking of securities in the demat account of the client on placement of sell orders. In case the sell orders are not executed, the block on the securities is removed.
4.The pay-in (transfer of Funds / securities) blocked at the time of order placement, from the bank / demat account of the client is carried out post-market hours and is upstreamed to the Clearing Corporation. The client earns interest on the available fund still the pay-in.

Further, in addition to the current mode of trading, the Qualified Stock Brokers (QSBs) shall provide either the facility of trading supported by blocked amount in the secondary market (cash segment) using UPI block mechanism or the 3-in-1 Trading Account facility, to their clients.

Kindly refer to the attached circular for more information.

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