{"id":222933,"date":"2023-01-18T19:12:00","date_gmt":"2023-01-18T13:42:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=222933"},"modified":"2023-02-25T12:39:15","modified_gmt":"2023-02-25T07:09:15","slug":"sebi-moots-asba-like-payment-system-for-secondary-market-stock-trade","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sebi-moots-asba-like-payment-system-for-secondary-market-stock-trade\/","title":{"rendered":"SEBI moots ASBA-like payment system for secondary market stock trade"},"content":{"rendered":"\n<p><b>Source: <\/b><span style=\"font-weight: 400;\">The post is based on the article<\/span><b> \u201cSEBI moots ASBA-like payment system for secondary market stock trade\u201d <\/b><span style=\"font-weight: 400;\">published in <\/span><b>Business Standard <\/b>on <b>17th January 2023.<\/b><\/p>\n<h2><b>What is the News?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Securities and Exchange Board of India(SEBI) has given details of a proposed framework for shifting to a new payments system for secondary market trades.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The move is primarily aimed at safeguarding investors from potential misuse of their funds by brokers.<\/span><\/p>\n<h2><b>What is the present payment system for secondary market trades?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Currently, brokers coordinate the payments between the clearing corporation and investors in the stock market settlement process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An investor must send the funds for purchasing shares to the broker, who then transfers it to the clearing corporation through a clearing member.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This system has the risk that a client&#8217;s collateral retained with a stockbroker or clearing member can be misused. Similarly, the pay-out due to the client can also be at risk in case the stockbroker and\/or fellow client(s) defaults.<\/span><\/p>\n<h2><b>What is the new proposed system for secondary market trades?<\/b><\/h2>\n<figure id=\"attachment_222934\" aria-describedby=\"caption-attachment-222934\" style=\"width: 415px\" class=\"wp-caption alignleft\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-222934 \" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2023\/01\/to-check-fund-misuse-secondary-mkt-trades-may-get-asba-like-settlement.jpg?resize=415%2C310&#038;ssl=1\" alt=\"secondary market trades\" width=\"415\" height=\"310\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2023\/01\/to-check-fund-misuse-secondary-mkt-trades-may-get-asba-like-settlement.jpg?w=640&amp;ssl=1 640w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2023\/01\/to-check-fund-misuse-secondary-mkt-trades-may-get-asba-like-settlement.jpg?resize=300%2C224&amp;ssl=1 300w\" sizes=\"auto, (max-width: 415px) 100vw, 415px\" \/><figcaption id=\"caption-attachment-222934\" class=\"wp-caption-text\">Source: ET<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Under the proposed system, client funds would remain blocked in his\/her account and would be directly transferred to the clearing corporation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A similar system is implemented for the primary market and is popularly known as ASBA (application supported by blocked amount).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This system would safeguard the market from the risks emanating from default by brokers. <\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article \u201cSEBI moots ASBA-like payment system for secondary market stock trade\u201d published in Business Standard on 17th January 2023. What is the News? Securities and Exchange Board of India(SEBI) has given details of a proposed framework for shifting to a new payments system for secondary market trades.\u00a0 The&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/sebi-moots-asba-like-payment-system-for-secondary-market-stock-trade\/\">Continue reading <span class=\"screen-reader-text\">SEBI moots ASBA-like payment system for secondary market stock trade<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10503],"class_list":["post-222933","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-business-standard","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1702683424},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/222933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=222933"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/222933\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=222933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=222933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=222933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}