The Securities and Exchange Board of India (Sebi) is planning to make the UPI block mechanism mandatory for Qualified Stock Brokers (QSBs) in the secondary market. This system, similar to ASBA, prevents funds from being deducted from bank accounts until the transaction is confirmed.
Currently, this facility is mandatory only for IPOs and optional for brokers in the secondary market from January 2024. Sebi's recent consultation paper highlights the potential for this mechanism to become popular among retail investors, especially if trading members adopt it.