(Reuters) – India’s market regulator on Tuesday proposed technology-based measures to secure the trading environment and to prevent unauthorised transactions in investors’ trading or demat account.
The Securities and Exchange Board of India has proposed SIM card-binding mechanism, among others, to strengthen authentication. In this, a user can login into the trading account only when the trading application recognises the unique client code of the user, along with the user’s SIM (subscriber identity module) and mobile device.
A call and trade facility either to a stockbroker or to an authorised person will be allowed only through centralized dedicated phone numbers, email address or mobile numbers of the stockbroker, SEBI proposed in a consultation paper.
SEBI also suggested provisions such as bio-metric authentication and facility of temporary lock-in of trading account.
The suggestion comes at a time when trading platforms are prone to hacking, identity theft and frauds due to lack of adequate technology-based controls, SEBI said.
The regulator has sought comments from stakeholders by March 11.
(Reporting by Anuran Sadhu in Bengaluru; Editing by Maju Samuel)
