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| Sebi plans trading via wireless devices |
| Press Trust Of India / New Delhi May 29, 2009, 00:17 IST |
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Seeks public comments on the proposal
The Securities and Exchange Board of India (Sebi) plans to extend the facility of internet trading in securities on exchanges by enabling use of wireless technology.
“It is proposed to explore the possibility of extending the existing framework of internet trading to enable use of wireless technology for securities trading,” it said in a statement. The regulator has sought public comments on the proposal by June 15.
Sebi said all requirements applicable for internet-based trading would also apply for wireles securities trading.
Sebi-registered stock brokers who provided internet-based trading services would be eligible to provide the services using the wireless medium, subject to approval from the respective exchanges, said the statement.
The market regulator said there should be secure access, end-to-end encryption and security of communication.
Adequate steps would be taken for user identification, authentication and access control through means such as user IDs, passwords, smart cards and biometric devices to prevent misuse, it added.
Sebi said network security protocols must be according to the prevalent industry standards and sound audit trails must be available for all transactions via wireless devices.
Apart from order confirmation, the user must be provided modification and cancellation facilities, it said. The user must also get trade confirmation along with the history of trades, according the list of planned safeguards.
“Information made available on hand-held devices should be timely and should not put users at a disadvantage vis-à-vis other means of communication,” said the regulator.
And, in case of a network failure, alternative means such as telephone or internet should be available, it said.
Further, as it might not be possible to give detailed investor information on hand-held devices, addresses of the websites should be provided where such information was available, Sebi said.
Anup Bagchi, executive director, ICICI Securities, told Business Standard the new framework was a path-breaking move which would further democratise access to the equity markets by riding the telecom boom.
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