Fingerprint, Eye-Scan May Be Required For Stock Trade Via Mobile App: SEBI
SEBI to mandate fingerprint or eye-scan for stock trading through mobile applications.
With an aim to enhance cyber security, markets regulator SEBI is looking to put in place a new set of guidelines, wherein fingerprints or eye-scan will be required for stock trading through mobile applications.
The markets watchdog has sought comments from market participants like brokers, traders and stock exchanges in this regard. A final regulation will be put in place after taking into account the views of all the stakeholders, regulatory sources said.
In case of applications installed on smartphones and tablets, traders and retail investors may need biometric authentication to buy and sell stocks, according to Sebi’s proposal.
Further, it has been proposed that after a few failed login bids, investors’ account might be locked till fresh authentication is completed. For fresh authentication, an e-mail or a one-time password may be sent to investors.
According to market experts, small brokers, who operate on low margins may face difficulties in implementing the proposed guidelines.
The development comes against the backdrop of instances of cyberattacks on systems in different parts of the world including India.
The Securities and Exchange Board of India is of the view that sophisticated cyber security and cyber resilience measures are required for the capital market.
The markets watchdog has been taking several steps to safeguard markets from cyberattacks. This included forming a high-level panel on cyber security in May last year to suggest measures to ring fence capital markets from such attacks.
Also, SEBI is beefing up its IT team with experts from the cyber security arena to ensure stronger firewalls against such attacks and faster corrective measures.