Securing Trading Accounts

Securities and Exchange Board of India (SEBI) on February 18, 2025 has released a consultation paper aimed at securing the trading environment and preventing unauthorized transactions in trading/ demat accounts of investors. The paper suggests technology-based solutions, such as SIM binding and biometric verification, to benefit investors.

According to the paper, innovative technological tools have led to an increase in unauthorized access to trading accounts, SIM spoofing to divert OTPs, unauthorized account modifications and erroneous share transfers.