While there is no denying that the market regulator Securities and Exchange Board of India (SEBI) is up-to-date on all aspects of its business, yet here it is on to something that will really hike the wizardry quotient -- SEBI is all set to turn more than tech-savvy.
Nine years after the New Zealand Stock Exchange (NZSE) made history of sorts with the Asia Pacific region's first demonstration of direct share trading over internet using a mobile phone and NZSE's own trading system, SEBI plans to extend the facility of internet trading in securities on exchanges through the same medium.
SEBI has also said that all the relevant requirements applicable for Internet based-trading will be applicable for securities trading using wireless network.
SEBI asked for public comments to reach it by June 15.
Though SEBI is in the stage of exploring the possibility of such a framework, it proposes to make all the board registered stock brokers eligible to provide securities trading using the wireless medium. However they would be subject to approval from respective exchanges.
Apart from exploring possibilities, SEBI also intends to make the entire framework fool-proof. In its proposed safeguards for wireless trading, it not only talks about having a secure access, but at the same time intends to have end-to-end encryption and security of communication from hand-held device to server.
To control any untoward dealings or misuse, stress would also be laid on having adequate measures, the market regulator said.
The board in its proposal has also mentioned that while it may not be possible to give detailed investor information on hand held devices, as an alternative, addresses of the websites should be provided so as to get the information.
SEBI however, is all geared up to set up proper standards as far as this particular framework is concerned. While it intends to ensure prevalent industry standard network security protocols, it also proposes to make available sound audit trails for various transactions.
With an aim of not putting the user in any sort of a disadvantageous position, the board proposes to make the information made available on the hand held device timely. SEBI thought in terms of network failures too and said alternative means like telephone and internet would be made available in such times.
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