The Securities and Exchange Board of India (SEBI) clarified on Friday that investors can continue using 3-in-1 accounts to apply online for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitised debt instruments.
In a circular, SEBI said this option is in addition to the existing methods of application.
A 3-in-1 trading account integrates a savings account, a demat account, and a trading account, allowing clients to keep their funds in a bank account and earn interest on the balances.
SEBI’s clarification comes after receiving feedback that highlighted the need for explicitly specifying the use of 3-in-1 accounts for applying in public issues of various securities.
Last month, Sebi's board approved a proposal whereby, in addition to the current mode of trading, the qualified stock brokers (QSBs) shall provide either the facility of trading supported by the blocked amount in the secondary market (cash segment) using UPI block mechanism (ASBA-like facility for the secondary market) or the 3-in-1 trading account facility, with effect from February 1, 2025.
The UPI block mechanism allows clients to trade based on blocked funds in their bank accounts without transferring the funds upfront to the trading member.
Clients of QSBs will have the option to either continue with the current method of trading by transferring funds to trading members or opt for the new facility.
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