Mobile Trading Framework Proposed by SEBI

SEBI has proposed a mobile trading framework that will enable registered brokers to provide securities trading using wireless technology (SEBI has invited comments from market participants latest by June 15).

SEBI registered brokers can introduce the service of securities trading using wireless technology after obtaining permission from respective Stock Exchanges. Brokers can apply as individuals (Rs. 50 L minimum network reqd.) or collective/groups as well.

Security Standards

SEBI has proposed following security features are mandatory for all Internet based trading systems:
i. User id
ii. First Level password (Private code)
iii. Automatic expiry of passwords at the end of a reasonable duration.
Reinitialise access on entering fresh passwords
iv. All transaction logs with proper audit facilities to be maintained in the system.
v. Secured Socket Level Security for server access through Internet
vi. Suitable Firewalls between trading set-up directly connected to an Exchange trading system and the Internet trading set-up.

Security products advised by SEBI:
a. Microprocessor based SMART cards
b. Dynamic Password (Secure ID Tokens)
c. 64 bit/128 bit encryption **
d. Second Level password (personal information e.g. village name, birth date etc.) – Download the paper

Mobile trading is still limited to few players only (Reliance Launched Mobile Trading in Feb 2009) app and the demand for such a system can be gauged by the fact that Moneycontrol’s mobile application grabbed 1 Lakh users within 1 month of launch.

What’s your take?

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