Trading supported by Blocked Amount in Secondary Market

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....Madam, Sub: Trading supported by Blocked Amount in Secondary Market 1. In its continuing endeavour to provide protection to the investors from the default of the Members [Trading Member ('TM ')/ Clearing Member ('CM')], SEBI had vide para 25 of Chapter 1 of Master Circular on Stock Exchanges and Clearing Corporations ('Master Circular') dated October 16, 2023, introduced a supplementary proc....

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.... features of the 3-in-1 trading account primarily include: 4.1. Integration of the trading account with the demat and bank accounts of the client. 4.2. 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. 4.3. Blocking of securities in the demat account of t....

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....ing, 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. 5.2. The 3-in-1 trading account facility offered/ to be offered by the TMs shall, at least have the features as specified at para 4 above. 5.3. Clients of the....