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At least 100 stock brokers have sought adoption of 'call management' solutions that help in call recording and SMS tracking, in the wake of Sebi's order requiring them to maintain record of client instructions.
However, a grouping of stock brokers Anmi has termed Sebi's directive of compulsorily keeping records of telephonic communications with clients as "not practical" since that would be difficult in terms of identification and retrieval.
Anmi (Association of National Exchanges Members of India), in a letter to Sebi earlier this month, also said monitoring of communications with clients would be difficult as multiple modes, including mobile phones and WhatsApp messenger, are used for placing orders.
Ankit Jain, CEO at MyOperator, which provides call management system, said Sebi's regulation is not impractical and there are solutions available for stock brokers.
MyOperator is a cloud based call management solution, which provides features like call recording, SMS tracking and call routing.
Jain, further, said the company is already working with many stock brokers to provide the call management solution.
"We at MyOperator, had 20 stock brokers as our clients who had already been using our services to record calls, even before Sebi issued its directive. Moreover, after the directive was issued, over 100 stock brokers already registered with us for call recording solutions," he told PTI.
Explaining about the solution, Jain said a cloud based call tracking software can help brokers get automated record of all their call conversations with clients. They can access the call recordings, anytime, anywhere.
Moreover, brokers can keep a record of all their received SMS conversations with clients at one place.
To prevent unauthorised trading activities, Securities and Exchange Board of India (Sebi) in September had asked brokers to compulsorily "use telephone recording system to record the instructions and maintain telephone recordings" in case the client is giving the orders.
The brokers have been asked to execute trades of clients only after keeping evidence of the client placing such an order.
The evidence could be physical record written and signed by the client, telephone recording, e-mail from authorised ID, log for internet transactions, record of SMS messages or any other legally verifiable record.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)