SEBI Online Trading Security: SIM Binding and Biometric Login
Why in the news
Growing online trading has raised hacking, identity theft, unauthorised access and SIM spoofing, so SEBI proposed stronger security for trading accounts.
Key proposals
| Measure | Detail |
|---|---|
| SIM binding | Account tied to mobile number and device, as in UPI; only registered devices allowed through a hard-bound SIM |
| Biometric authentication | Fingerprint or face recognition at login |
| Proximity and QR-code login | Multiple devices allowed but one active session at a time; QR-based time-out authentication for laptops and other secondary devices |
| Investor controls | Temporary account lock, view active sessions, set trading limits such as volume and price band |
| Family access | Several Unique Client Codes (UCCs) on one mobile device with permission |
Implementation
- Phased rollout starting with the top 10 Qualified Stockbrokers (QSBs).
- Public feedback accepted until March 11.
Concerns
- Stronger authentication cuts fraud risk but may raise compatibility and user-adaptation issues.
Exam angle
- Regulator: SEBI; online trading means buying and selling securities via internet platforms.
- Terms: SIM binding, UCC, QSB.