Proposed framework for Securities trading using wireless technology.

The framework for Internet based trading was put in place by SEBI vide circular no.SMDRP/POLICY/CIR-06/2000 dated Jan 31, 2000. It is proposed to explore the possibility of extending the existing framework of internet trading to enable use of wireless technology for securities trading subject to the following safeguards:

(a) SEBI registered Stock Brokers who provide Internet based trading services shall be eligible to provide securities trading using wireless technology. A broker/ member who desire to provide trading facility through wireless medium will be required to take approval from respective exchanges.

(b) For wireless network there should be secure access, end to end encryption and security of communication from hand held device to server.

(c) Adequate measures should be taken for user identification, authentication and access control using means such as user id, passwords, smart cards, biometric devices or other reliable means to prevent misuse of facility by unauthorized persons

(d) Network security protocols and interface standards should be as per prevalent industry standards and sound audit trails should be available for all transactions conducted using wireless devices.

(e) Information made available on the hand held device should be timely and should not put the user at a disadvantage vis-à-vis other means of communication

(f) Order confirmation should be provided to the user on submitting the order. Order modification/ cancellation facilities should also be provided. Trade confirmation should be provided to the user, along with history of trades.

(g) In case failure of the network, alternative means of communication such as telephone or Internet should be available.

(h) It may not be possible to give detailed investor information on hand held devices. In such cases, minimum information may be given with addresses of the Internet web site/web page where detailed information would be available.

The proposed framework for securities trading using wireless technology is given as annexure ‘A’.

Comments are invited from the public on the above proposal. The comments may be sent by e-mail upto June 15, 2009 to jyotis@sebi.gov.in or peterm@sebi.gov.in. Comments may also be sent to the following address, so as to reach latest by June 15, 2009

Deputy General Manager

Market Regulation Department – Division of Policy

Securities and Exchange Board of India,

SEBI Bhavan,

C-4A, G-Block, Bandra Kurla Complex,

Mumbai- 400 051

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Proposed framework for Securities trading using wireless technology. The framework for Internet based trading was put in place by SEBI vide circular no.SMDRP/POLICY/CIR-06/2000 dated Jan 31, 2000. It is proposed to explore the possibility of extending the existing framework of internet trading to enable use of wireless technology for securities trading subject to the following safeguards: (a) SEBI registered Stock Brokers who provide Internet based trading services shall be eligible to provide securities trading using wireless technology. A broker/ member who desire to provide trading facility through wireless medium will be required to take approval from respective exchanges. (b) For wireless network there should be secure access, end to end encryption and security of communication from hand held device to server. (c) Adequate measures should be taken for user identification, authentication and access control using means such as user id, passwords, smart cards, biometric devices or other reliable means to prevent misuse of facility by unauthorized persons (d) Network security protocols and interface standards should be as per prevalent industry standards and sound audit trails should be available for all transactions conducted using wireless devices. (e) Information made available on the hand held device should be timely and should not put the user at a disadvantage vis-à-vis other means of communication (f) Order confirmation should be provided to the user on submitting the order. Order modification/ cancellation facilities should also be provided. Trade confirmation should be provided to the user, along with history of trades. (g) In case failure of the network, alternative means of communication such as telephone or Internet should be available. (h) It may not be possible to give detailed investor information on hand held devices. In such cases, minimum information may be given with addresses of the Internet web site/web page where detailed information would be available. The proposed framework for securities trading using wireless technology is given as annexure ‘A’. Comments are invited from the public on the above proposal. The comments may be sent by e-mail upto June 15, 2009 to jyotis@sebi.gov.in or peterm@sebi.gov.in. Comments may also be sent to the following address, so as to reach latest by June 15, 2009 Deputy General Manager Market Regulation Department – Division of Policy Securities and Exchange Board of India, SEBI Bhavan, C-4A, G-Block, Bandra Kurla Complex, Mumbai- 400 051