India's Securities and Exchange Board introduced a supplementary process for trading in the secondary market based on blocked funds in an investor's bank account to block unauthorised trading using investor's money. Similar to the Application Supported by Blocked Amount-like facility available for the primary market, the new facility will be provided by integrating Reserve Bank of India-approved Unified Payments Interface mandate service of a single-block-and-multiple-debits with the secondary market trading and settlement process called UPI block facility. The new facility will become effective by January 1, 2024, and will eliminate the custody risk of client collateral and reduce capital requirements for members.
