Sebi has a new plan to prevent trading fraud: SIM binding, biometrics and more

The market regulator has proposed linking trading accounts with SIM cards and making biometric authentication mandatory to enhance security in online trading and protect investors from unauthorized transactions. The regulator set up a working group to address these issues and came out with a consultation paper seeking a multi-faceted framework to improve the security of trading accounts through advanced authentication measures. Proposed security framework One key proposal is to introduce a SIM-binding mechanism, similar to the one used in Unified Payments Interface transactions, which will link a mobile number, device, and the unique client code for secure access. Sebi also proposed that investors will be able to access their accounts from multiple devices, but the login will require proximity-based authentication, with an active session on only one device at a time.