Initially, this functionality will be available to limited pilot customers. It will be supported by key stakeholders including clearing corporations, stock exchanges, depositories, stockbrokers, banks and UPI app providers. Groww is acting as a brokerage app for the ‘UPI for Secondary Market’ beta launch. HDFC Bank, HSBC, ICICI Bank and Yes Bank are the sponsor banks for the clearing corporations and exchanges.
Soon you will be able to buy and sell shares with the help of UPI (Unified Payments Interface). National Payments Corporation of India (NPCI) has announced that ‘UPI for Secondary Market’ will be launched next week i.e. on January 1. This launch will currently be done in beta version for the equity cash segment. It will be supported by key stakeholders including clearing corporations, stock exchanges, depositories, stockbrokers, banks and UPI app providers.
NPCI says that the facility of ‘Application Supported by Blocked Amount (ASBA)’ of ‘trading supported by blocked amount in the secondary market’ through block mechanism has been approved by SEBI. It is based on the RBI-approved facility of single-block-and-multiple-debit in UPI and the date for its implementation is set for January 1.
Initially the facility will be available for limited customers
The statement issued by NPCI said that initially, this functionality will be available to limited pilot customers. During this pilot project, investors can block funds in their bank accounts, which will be debited only by the clearing corporations once the trade is confirmed during settlement. Clearing Corporations will process payouts to these customers directly on T+1 basis. Initially, HDFC Bank and ICICI Bank customers will be able to avail this facility.
Which will be the brokerage app and which will be the UPI app?
The statement said that Groww is acting as a brokerage app for the ‘UPI for Secondary Market’ beta launch. Whereas BHIM, Groww and YES PAY NEXT have been designated as UPI apps. HDFC Bank, HSBC, ICICI Bank and Yes Bank are acting as clearing corporations and sponsor banks for the exchanges. It also said that other stakeholders, including stockbrokers like Zerodha, banks like Axis Bank and Yes Bank and UPI-enabled apps like Paytm, PhonePe, are in the certification stage. These will soon become part of the beta launch.
