Soon, you’ll be able to buy and sell shares using UPI (Unified Payments Interface).
The National Payments Corporation of India (NPCI) has announced the launch of ‘UPI for Secondary Market’ on January 1.
In the beginning, it will be a test version for the equity cash segment and will involve key players like clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers.
NPCI mentions that SEBI has approved the ‘Application Supported by Blocked Amount (ASBA)’ for ‘trading supported by blocked amount in the secondary market.
‘ It is based on the RBI-approved facility of single-block-and-multiple-debit in UPI, with implementation scheduled for January 1.
Initially, this feature will be limited to a small group of customers. During the pilot project, investors can lock funds in their bank accounts,
and these funds will only be deducted by clearing corporations once the trade is confirmed during settlement.
Clearing Corporations will directly process payouts to these customers on a T+1 basis. Initially, this service will be available to HDFC Bank and ICICI Bank customers.
Regarding the brokerage and UPI apps, Groww will serve as the brokerage app for the beta launch of ‘UPI for Secondary Market.
‘ BHIM, Groww, and YES PAY NEXT are designated as UPI apps. HDFC Bank, HSBC, ICICI Bank, and Yes Bank will act as clearing corporations and sponsor banks for the exchanges.
Other stakeholders, such as Zerodha for stockbrokers, Axis Bank and Yes Bank for banks,
and UPI-enabled apps like Paytm and PhonePe, are in the certification stage and will soon join the beta launch.
