The National Stock Exchange (NSE) on December 29, 2023, issued a notification regarding ASBA.
The trading through block mechanism, on lines of ASBA for primary markets, is a retail investor-friendly measure conceptualised by SEBI and facilitated by RBI and NPCI. The new facility, which is being rolled out for the equity cash segment to begin with, will be launched in its beta version on January 1st. The facility is optional and will provide investors with another mechanism to trade in secondary markets, with the money leaving their account only on the instructions of the clearing corporation and only to the extent of their obligations; even the securities settlement for such clients would be done directly by the clearing corporation making this the safest way for a client to trade in secondary markets. In time, as awareness about this facility grows amongst stakeholders, we expect this mechanism to become a popular way for retail customers to trade in securities markets.
