Sebi chairperson Madhabi Puri Buch on Wednesday said the capital markets regulator is working on an ASBA-like facility for secondary market transactions as well.

Speaking at the Global Fintech Fest here, she said in IPO, the Application Supported by Blocked Amount (ASBA) system helps ensure that money from an investor gets moved only when an allotment happens.

“We are now actively engaged in looking at ASBA-like (facility) for the secondary market.

“So if that can be done for the primary market, why can’t it be done for the secondary market?” Buch said.

At present, the investor parks money with the broker, ensuring that the middleman gets a float, whereas an ASBA-like facility will take away the money from such entities.

Buch asked fintech players to avoid a few things in their business models.

“If your business model is such that it is going to increase concentration risk or structural vulnerability, chances are that sooner or later the regulator will move to eliminate,” she said