SEBI suggests trade settlement system that bypasses broker

The Securities and Exchange Board of India (Sebi) is considering an ambitious plan to alter the payment mechanism in stock market trades. The markets regulator is discussing with market infrastructure intermediaries the possibility of implementing a system that will result in money effectively leaving an investor’s bank account only after a trade is completed, said three people familiar with the development. This would mean funds from an investor’s bank account would not go to the broker but directly flow to settle the trade.