A year back or so, SEBI proposed Mobile trading framework, in order to enable registered brokers to provide securities trading using wireless technology. As per the framework, 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.
SEBI has now approved mobile trading, giving green signal to stock trading on mobile platform. The mobile app will work on GPRS-enabled phones and brokers will have to meet the SEBI’s security related guidelines.
India has a lot more mobile phones than PCs (though only 2 million Mobile Internet users are serious users) and SEBI’s decision to open up the trading platform for mobile users will hopefully result in the rise of equity culture (top that with consumer friendly mobile Internet plans).
Brokerage firms like Kotak Securities, Angel Broking, Geojit BNP Financial Services and Motilal Oswal Financial Services already have their systems in place and will launch their mobile app, once .
Security Details of SEBI’s Proposed Framework
SEBI has proposed following security features:
- Session login details should not be stored on the devices used for internet based trading and mobile trading. The broker’s server routing orders to the exchange trading system should be located in India.
- User id
- First Level password (Private code)
- Automatic expiry of passwords at the end of a reasonable duration.
- Reinitialise access on entering fresh passwords
- All transaction logs with proper audit facilities to be maintained in the system.
- Secured Socket Level Security for server access through Internet
What’s your take on SEBI’s move?