Suryaa Business Desk: Surya Business Bureau, Mumbai: With the aim of protecting investors in the stock market, securities... Surya Business Bureau, Mumbai: The Securities and Exchange Board of India (SEBI) will soon come up with comprehensive guidelines to curb misuse of trading terminals by stock brokers with the aim of protecting investors in the stock market. Sebi Chairman Tuhin Kanta Pandey revealed that strict regulations are being made to ensure that brokers and market intermediaries act responsibly.
He clarified that terminal security and cyber security are the most important aspects of SEBI's roadmap for market development and transparency. Safe Trading Environment – New Regulations: Sebi is taking steps in this direction in the wake of concerns that trading terminals are being misused by some for illegal purposes and unauthorized transactions. To curb actions that undermine market credibility: Clear accountability and data controls will be mandated in the management of trading terminals. Rules are being finalized to ensure that the state-of-the-art 'kill switches' systems and continuous human oversight are in place to immediately stop abnormal or risky transactions. The Sebi Chairman said that it is planning to implement a 'graded compliance framework' based on the level of brokers and client exposure.
Cyber security needs to be a business priority: Tuhin Kanta Pandey advised brokers that with the proliferation of technology, the threat of cyber attacks is also increasing and cyber security should be seen as a business priority of the organization rather than just an IT expense. He said that the KYC process should not be limited to filling up forms on paper and should become 'understanding the client's needs', only then would investors realize market risks and invest for a longer period of time. SEBI is also preparing separate 'sandbox' guidelines for the use of Artificial Intelligence (AI).
