Securities Exchange Board of India, India’s market regulator, suggested implementing technology-driven solutions to enhance the safety of the trading environment and to stop unauthorized transactions in investors’ trading or demat accounts on Tuesday.
It suggested a mechanism for binding SIM cards, among other measures, to enhance authentication. A user is allowed to access the trading account solely when the trading application identifies the user’s unique client code, along with the user’s SIM (subscriber identity module) and mobile device.
A call and trading option will be permitted solely through centralized dedicated phone numbers, email addresses, or mobile numbers of the stockbroker or an authorized individual, proposed SEBI in a consultation paper.
SEBI has also recommended measures like biometric verification and the option to temporarily lock trading accounts.
The recommendation arrives at a moment when trading platforms are vulnerable to hacks, identity theft, and fraud due to insufficient technology-based safeguards, according to SEBI.
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