Paving the way for brokers to make stock market transactions over their mobile phones, market regulator Securities and Exchange Board of India has proposed that registered stockbrokers who provide internet-based trading services should be permitted to carry out trading on wireless devices.
''It is proposed to explore the possibility of extending the existing framework of internet trading to enable use of wireless technology for securities trading,'' SEBI said in a statement in Mumbai. The regulator has sought public comments on the proposal by 15 June.
SEBI said all requirements applicable for internet-based trading would also apply for wireless securities trading. Any broker or member desiring to provide trading facility on wireless will be required to take approval from the exchange concerned.
''For a wireless network, there should be secure access, end-to-end encryption and security of communication from handheld device to server. Adequate measures should be taken for user identification, authentication and access control using means such as user ID, passwords, smart cards, biometric devices or other reliable means to prevent misuse of facility by unauthorised persons,'' the SEBI proposal said.
It further says information made available on the hand held device should be timely and should not put the user at a disadvantage vis-à-vis other means of communication.
''Order confirmation should be provided to the user on submitting the order and facilities for cancellation or modification should also be provided. Trade confirmation should be provided to the user, along with history of trades. In case failure of the network, alternative means of communication such as telephone or Internet should be available,'' SEBI said.
It also 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.
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 is available.
Traders widely welcomed the move, which is a logical extension of permitting internet trade.