Sebi asks brokers to strengthen internet trading system

Regulator instructs brokers to capture the IP address, for all IBT / STWT orders

PTI | July 1, 2011



Market regulator Sebi on Thursday asked stock brokers to put in place an adequate safety mechanism to provide secure and trouble-free internet-based trading platform to their clients.

"The broker system should have adequate safety features to ensure it is not susceptible to internal and external attacks", Securities and Exchange Board of India (Sebi) said in a circular.

"In case of failure of IBT/STWT, the alternate channel of communication shall have adequate capacities for client identification and authentication," it added.

As part of the exercise to promote secure internet based trading system, the regulator said the brokers should capture the IP (Internet Protocol) address (from where the order originate), for all internet based trading (IBT) / Securities Trading through Wireless Technology (STWT) orders.

In January 2,000, Sebi had asked exchanges to put in place a system for handling of complaints with regard to IBT specially complaints related to unauthorised access using IBT.

The stock exchanges have also been directed to make necessary amendments to the relevant rules and regulations to strengthen internet trading system.

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