To safeguard investors’ money from misuse, an ASBA-like facility for trading in secondary markets will be available from January or February, Sebi chief Madhabi Puri Buch said on Friday.
This Application Supported by Blocked Amount (ASBA)-like facility already available for the primary market, ensures that the investor’s fund gets moved only when the allotment is completed.
Now, the facility will be available for the secondary market from January or February, the Sebi chairperson said at the CII Global Economic Policy Forum here.
The move could also help investors to save as much as Rs 3,500 crore annually, she added.
Under the framework, funds will remain in the client’s account but will be blocked in favour of the Clearing Corporation (CC) till the block mandate expires or till the block is released by the CC, or debit of the block towards obligations arising out of the trading activity of the client, whichever occurs first.
Further, settlement for funds and securities will be d
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