This proposal is in line with SEBI investor protection efforts, as it comes in response to rising concerns over unauthorized account access, SIM spoofing, and other security breaches within the trading ecosystem
The Securities and Exchange Board of India (Sebi) has introduced a proposal to implement a SIM-based authentication system for trading and demat accounts. This system is designed to enhance security by ensuring that only authorized devices can access these accounts, using a method similar to the security protocols found in Unified Payments Interface (UPI) transactions.
Under the new proposal, traders will need to log in to their trading accounts by linking their Unique Client Code (UCC) with the SIM and mobile device they use. This will ensure that only the registered device is able to access the account, providing a stronger layer of protection for trading account safety. This system will also enable investors to track and monitor any active sessions across different devices.
Enhanced security with multi-factor authentication
In addition to recognizing the UCC, SIM, and mobile device details, the system will require biometric authentication on the primary mobile device to further safeguard against unauthorized access. For logging into devices such as desktops or laptops, a QR code-based authentication system will be employed. This system will be time-sensitive and proximity-sensitive, mirroring features used by many social media platforms for multiple logins.
Also Read: SEBI strengthens mutual fund regulations to combat insider trading and front-running
Sebi’s proposal also includes a fallback mechanism for instances where a user loses or changes their primary device, ensuring that they can still access their accounts securely. Moreover, one mobile device can be linked to multiple UCCs for family members using the same phone number, provided the proper authorizations are in place.
Phased rollout of enhanced security
Initially, the SIM-based authentication system will be rolled out for the 10 largest brokers in the market and will be extended to all brokers over time. Investors will have the option to opt into this new security feature.
This initiative is in line with SEBI investor protection efforts, as it comes in response to rising concerns over unauthorized account access, SIM spoofing, and other security breaches within the trading ecosystem. Sebi’s goal is to improve SEBI trading account security, providing a more secure and user-friendly authentication process for investors while strengthening SEBI security measures overall.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
