Investors can buy and sell shares through mobile phones now. The Securities and Exchange Board of India has allowed registered brokers who provide internet-based trading to facilitate securities trading using wireless technology, including mobile phones and laptops with data cards.
In a circular issued today, SEBI said the stock exchange should ensure the broker complies with requirements of secure access, encryption, security of communication for internet-based trading and securities trading using wireless technology.
“DOT policy and regulation will govern the level of encryption,” SEBI said.
Vinesh Menon, Deputy CEO, Online Investments & Stock Broking, Bajaj Capital said: “This is a welcome move that reiterates the regulator’s commitment to enable a wider network of retail investors participate in stock markets.The fact that the Indian telecom industry is the fastest growing in the world, and the fact that 630 million Indians use the mobile from a mere 5 million in 2001, reflects the huge opportunity that exists in this space. Clearly, trading through mobile phones will outpace trading through internet in less than two years, and will truly enable on-the-move trading facility.”
In case of failure of wireless network, alternative means of communication for placing orders should be available. Additional provisions specifying possible risks, responsibilities and liabilities should be incorporated in the broker-client agreement or by bringing to notice of clients, SEBI said.
Source:- https://www.indianexpress.com/news/In-a-first--Sebi-allows-trading-in-shares-using-the-cellphone/673585
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