Initially, this functionality will be available to a limited set of pilot customers, the NPCI said in a statement. During this pilot, investors can block funds in their bank accounts, which will only be debited by the clearing corporations upon trade confirmation during settlement.
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Mumbai: National Payments Corporation (NPCI) is all set to roll out ‘UPI for Secondary Market’ in its test phase, starting from the first day of the new year, January 1. Making its entrance into the equity cash sector, this new initiative is a collaborative effort, bringing together different players like clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers. ‘UPI for Secondary Market’ is designed to enable secure and straightforward transactions in the secondary market, as per a report covered by news agency IANS.
Given the growing acceptance of UPI as a handy and adept payment method, its application to the secondary market will likely simplify the trading process while improving the experience for investors.
Roll Out For UPI In Secondary Market
Initially, this functionality will be available to a limited set of pilot customers, the NPCI said in a statement. During this pilot, investors can block funds in their bank accounts, which will only be debited by the clearing corporations upon trade confirmation during settlement.
Clearing corporations will directly process payouts to these clients on a T+1 basis, according to the NPCI. This beta launch is facilitated by Groww as the brokerage app, alongside BHIM, Groww, and Yes PAY Next as UPI apps.
Initially, HDFC Bank and ICICI Bank customers will be able to avail of this facility. Further, HDFC Bank, HSBC, ICICI Bank, and Yes Bank are acting as sponsor banks for the clearing corporation and exchanges, said the NPCI.
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Other stakeholders, including stockbrokers such as Zerodha, customer’s banks like Axis Bank and Yes Bank, and UPI-enabled apps like Paytm and PhonePe, are in the certification stage and set to participate in the beta launch soon.
Wall Street Hits Record High In 2023
Wall Street hit record high after record high in 2023, a year investors had feared would be a washout as elevated interest rates threatened to grind the economy to a halt, media reports said.
However, a resilient job market, robust consumer spending and easing inflation kept investor confidence high — helping propel all three indexes to double-digit gains.
S&P 500, the broadest measure of the US stock market closed 0.28 per cent lower on Friday, leaving it just under 30 points away from a record-high close, it gained 24 per cent this year, ending 2023 with a bang. It also notched its ninth-straight weekly gain — the longest streak since January 2004. This year has been much kinder to the market than last: The benchmark index fell by about 20 per cent in 2022, CNN reported.
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Dow Jones Industrial Average reached multiple record highs in December, including notching records in each of the past five trading sessions. It was down 0.05 per cent Friday, closing at 37,689. In 2023, the Dow gained 14 per cent.
