To combat rising cyber threats and unauthorized transactions in online trading and demat accounts, SEBI has proposed a new security framework focused on technology-driven measures. The Consultation Paper outlines authentication mechanisms to prevent fraud and ensure only authorized users access trading accounts. The framework links the ๐๐ง๐ข๐ช๐ฎ๐ ๐๐ฅ๐ข๐๐ง๐ญ ๐๐จ๐๐ (UCC) to a registered mobile number and device to create a secure trading environment.
๐๐๐ฒ ๐๐ซ๐จ๐ฉ๐จ๐ฌ๐๐ฅ๐ฌ
๐๐๐ ๐๐ข๐ง๐๐ข๐ง๐ ๐๐๐๐ก๐๐ง๐ข๐ฌ๐ฆ: A One UCC โ One Device โ One SIM model, ensuring only the registered device and SIM can access the account.
๐๐ข๐จ๐ฆ๐๐ญ๐ซ๐ข๐ ๐๐ฎ๐ญ๐ก๐๐ง๐ญ๐ข๐๐๐ญ๐ข๐จ๐ง: Mandatory fingerprint or facial recognition for secure logins.
๐๐ซ๐จ๐ฑ๐ข๐ฆ๐ข๐ญ๐ฒ-๐๐๐ฌ๐๐ ๐๐ฎ๐ฅ๐ญ๐ข-๐๐๐ฏ๐ข๐๐ ๐๐จ๐ ๐ข๐ง: QR code-based, time-sensitive login with only one active session at a time.
๐๐๐ฆ๐ฉ๐จ๐ซ๐๐ซ๐ฒ ๐๐๐๐จ๐ฎ๐ง๐ญ ๐๐จ๐๐ค-๐๐ง: Option to lock trading accounts when not in use.
๐๐๐ฅ๐ฅ & ๐๐ซ๐๐๐ ๐๐๐ฌ๐ญ๐ซ๐ข๐๐ญ๐ข๐จ๐ง๐ฌ: Orders placed only via dedicated, centralized contact methods.
๐๐๐๐ข๐ญ๐ข๐จ๐ง๐๐ฅ ๐๐๐๐ฎ๐ซ๐ข๐ญ๐ฒ ๐ ๐๐๐ญ๐ฎ๐ซ๐๐ฌ: Monitoring and revoking active sessions, family account linkage with proper authorization, and a fallback for re-registration in case of device loss.
๐๐ฆ๐ฉ๐ฅ๐๐ฆ๐๐ง๐ญ๐๐ญ๐ข๐จ๐ง ๐๐ง๐ ๐๐๐ฑ๐ญ ๐๐ญ๐๐ฉ๐ฌ
As per SEBI, a phased rollout will begin with the top 10 Qualified Stock Brokers (๐๐๐๐ฌ), making the system optional at first, with plans for mandatory implementation. A copy of the Consultation Paper is attached.
Readers are welcome to provide their comments to Regstreet Law Advisors at info@regstreetlaw.com
Sumit Agrawal Kavish Garach Abhineet Pange Akarsh Tripathi Mahima Jayan Aditi Sahu Anushka Fuke Prachi Bothra