Taxmann's Analysis | SEBI's Game-Changing Move – 'UPI Block Facility' to Transform Secondary Market Trading

· Taxmann Publications Private Limited
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The Securities and Exchange Board of India (SEBI) has introduced a new process for trading in the secondary market called the UPI block facility. This facility aims to enhance the protection of cash collateral by integrating the Reserve Bank of India (RBI) approved Unified Payments Interface (UPI) mandate service of single-block-and-multiple-debits with the secondary market trading and settlement process.


The SEBI vide. Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2023/99, Dated June 23, 2023, has introduced a new process for trading in the secondary market called the UPI block facility. The key amendment includes: 

‣ Features of the framework for UPI block facility; 

‣ How Settlement Pay-in/Pay-Out would take place; 

‣ Dealing in shortages/shortfalls;

‣ Applicability of the amendment.


This article analyses the key amendments issued by SEBI and examines their potential impact on the market.

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