Sebi clarifies on 3-in-1 accounts usage for public issue applications

Markets regulator Sebi connected Friday clarified that investors tin proceed utilizing 3-in-1 accounts to use online for nationalist issues of indebtedness securities, non-convertible redeemable penchant shares, municipal indebtedness securities, and securitised indebtedness instruments. This is successful summation to the existing modes of application, Sebi said successful a circular.

A three-in-one trading relationship combines a savings account, a demat account, and a trading relationship into a azygous integrated solution. In this case, the clients would person their funds successful their slope account, earning involvement connected the currency balances.

The clarification came aft Sebi received feedback that determination is simply a request to explicitly specify the usage of 3-in-1 benignant accounts for making an exertion successful the nationalist contented of indebtedness securities, non-convertible redeemable penchant shares, municipal indebtedness securities and securitised indebtedness instruments.

Last month, Sebi's committee approved a connection whereby, successful summation to the existent mode of trading, the qualified banal brokers (QSBs) shall supply either the installation of trading supported by the blocked magnitude successful the secondary marketplace (cash segment) utilizing UPI artifact mechanics (ASBA-like installation for the secondary market) oregon the 3-in-1 trading relationship facility, with effect from February 1, 2025.

In the UPI artifact mechanism, clients tin commercialized successful the secondary marketplace based connected blocked funds successful their slope accounts alternatively of transferring the funds upfront to the trading member.

Clients of the QSBs volition person the enactment to either proceed with the existing trading installation by transferring funds to trading members oregon opt for the caller facility.