SEBI Approves 'UPI for Secondary Market' Trading Mechanism; Launch Set for January 1, 2024

The Securities and Exchange Board of India (SEBI) has granted approval for a new trading mechanism akin to the ASBA model, allowing trading in the secondary market with a blocked amount. This development is based on the Reserve Bank of India's (RBI) endorsement of a single-block-and-multiple-debit feature in UPI. The implementation is scheduled to commence on January 1, 2024, with a beta phase launch in the equity cash segment planned for the upcoming week.

The 'UPI for Secondary Market' initiative is a collaborative effort involving clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers. The initial functionality will be limited to a select group of pilot customers, with Groww leading the beta launch, supported by UPI apps like BHIM and YES PAY NEXT. Initially, customers of HDFC Bank and ICICI Bank can avail of this service, with other stakeholders expected to join the beta launch soon.