In the margin

ASBA-like system will benefit retail investors

Securities and Exchange Board of India Chairperson Madhabi Puri Buch’s announcement that the markets regulator is considering extending the concept of application supported by blocked amount, or ASBA, to the secondary market has interesting implications. It could smooth out trading for retail investors and enable individuals to earn interest while maintaining market exposure. But it could also result in a massive competitive advantage for banks, which do also offer securities broking services and hurt standalone brokerages and fintechs. ASBA as it stands has proved to be a boon for retail investors in the primary markets. It allows an investor to