SEBI Proposes Advanced Security Measures for Trading Accounts

The Securities and Exchange Board of India (SEBI) has proposed new technology-based security measures to enhance the safety of trading and demat accounts. These initiatives aim to prevent unauthorised transactions and fortify authentication mechanisms, ensuring a more secure trading environment for investors.

Strengthening Authentication with SIM Binding

SEBI has suggested implementing a SIM binding mechanism similar to UPI applications. This would require a Unique Client Code (UCC) to be linked with a single SIM and mobile device, thereby ensuring that logins occur only from authenticated devices. 

This measure would significantly reduce the risk of unauthorised access to trading accounts. Additionally, biometric authentication and login restrictions on multiple devices have also been proposed to enhance security further.

Centralised Call and Trade Facility

To mitigate risks associated with unauthorised transactions, SEBI has recommended that the call and trade facility be allowed only through dedicated and centralised phone numbers, email addresses, or mobile numbers registered with the stockbroker. 

This approach is aimed at preventing fraudulent activities such as SIM spoofing, unauthorised modifications, and erroneous share transfers.

Conclusion

With the increasing reliance on web and mobile-based trading platforms, SEBI’s proposed measures aim to tackle risks such as hacking, identity theft, and fraudulent activities. By leveraging technology-driven security protocols, the regulator seeks to provide investors with a safer trading experience.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.