UPI for Secondary Market

UPI for Secondary Market
UPI for Secondary Market

This beta launch is facilitated by Groww as the brokerage app, alongside BHIM, Groww, and YES PAY NEXT as UPI apps.

Bengaluru, January 2, 2024: The ASBA-like facility of ‘Trading supported by blocked amount in Secondary Market’ through block mechanism was approved by SEBI based on the RBI-approved facility of single-block and multiple-debit in UPI, with an implementation timeline of January 1, 2024.

The launch of ‘UPI for Secondary Market’ is set to commence next week in its beta phase for the equity cash segment, with the collaborative support of key stakeholders including clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers. Initially, this functionality will be available to a limited set of pilot customers.

During this pilot, investors can block funds in their bank accounts, which will only be debited by the clearing corporations upon trade confirmation during settlement. Clearing corporations will directly process payouts to these clients on a T+1 basis.

This beta launch is facilitated by Groww as the brokerage app, alongside BHIM, Groww, and YES PAY NEXT as UPI apps. Initially, HDFC Bank and ICICI Bank customers will be able to avail of this facility. Further, HDFC Bank, HSBC, ICICI Bank, and Yes Bank are acting as sponsor banks for the clearing corporation and exchanges.

Other stakeholders, including stockbrokers such as Zerodha, customer’s banks like Axis Bank and Yes Bank, and UPI-enabled apps like Paytm and PhonePe, are in the certification stage and set to participate in the beta launch soon.

Also readThe integration of generative AI into workforce management yields numerous advantages, says Vikas Wahee, Head of Solutions, BPM & ITES, Intellicus Technologies

Do FollowCIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter 

About us:

CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics.