New Delhi: During the recently held Sebi board meeting, India’s capital market regulator took several steps in the interest of retail investors. The Sebi board meeting  was headed by chairperson, Madhabi Puri Buch, who had recently got embroiled in controversies after  the US based whistle blower Hindenburg Research and her own employees raised serious allegations against her in two separate incidents. Lets look at some of the top decisions taken in the interest of retail traders during the Sebi board meeting.

Retail Investors To Directly Buy Shares From Bank Account

The market watchdog has asked Qalified Stock Brokers (QSBs) to allow retail investors to trade in the secondary market directly from their bank account using the UPI-based block mechanism (similar to the ASBA feature used in case of IPOs.) Funds will be blocked in bank account which can be used to place trades using UPI. Albeit, during the Sebi board meeting, this has not been made this mandatory. The QSBs will have to either give this particular feature or the 3-in-1 trading account facility to their clients. Either of these two features will have to be implemented from February 1, 2025.

Mutual Fund Lite

Mutual Fund (MF) Lite also hogged the limelight during Sebi board meeting. With MF Lite the industry will see participation of more and more investors. It will make  mutual fund investments more attractive in India. Its an investor friendly  innovation. From the Asset Management Companies’ (AMCs) point of view, these organizations will be prompted to launch more and more passive schemes. It will deepen penetration of India’s investment landscape.  

Top 500 Stocks In T+0 Settlement Cycle

In the Sebi board meeting, the market watchdog has given its approval for inclusion of stocks from the current 25 to top 500 stocks as per market capitalization in the T+0 Settlement Cycle. This will be implemented in a phased manner. Albeit, Sebi has also allowed brokerage firms to levy charges on extending of the service of T+0 Settlement Cycle to retail investors. The capital market watchdog also said that for time being it is putting aside the instantaneous settlement mechanism.  

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