SEBI, the country’s market regulator, plans to make your mobile phone the primary gateway for stock market transactions, proposing a system that would bind trading accounts to specific SIM cards and devices.
The Securities and Exchange Board of India (SEBI) on Tuesday unveiled a consultation paper suggesting a “One UCC-One Device-One SIM” mechanism, similar to UPI payment applications, which would allow investors to trade only through their registered mobile devices and SIM cards.
Under the proposed framework, traders would need to link their Unique Client Code (UCC) with their mobile device’s IMEI number and registered SIM card. Login attempts would require biometric authentication on the primary SIM-bound device, adding an extra layer of security against unauthorized access.
For those trading through desktops or laptops, SEBI has proposed implementing a time-sensitive and proximity-based QR code authentication system, similar to social media platform logins. The regulator has also planned for contingencies, including a backup system for investors who lose or change their devices.
The proposed measures come as trading platforms face increasing threats from hacking, identity theft, and frauds due to inadequate technological controls. The implementation would begin with the top 10 Qualified Stock Brokers and initially be optional for investors before becoming mandatory in phases.
To accommodate traditional trading methods, SEBI has suggested that call-and-trade facilities would only be allowed through centralized dedicated phone numbers and email addresses of stockbrokers.
The regulator is seeking public comments on these proposals until March 11, 2025.