How SEBI's new norms will safeguard stock market investors — Explained
demat accounts, ATMs, and Credit Cards. In a circular dated 12 January, the Securities and Exchange Board of India (Sebi) has planned to offer the facility of voluntary freezing or blocking of the ‘Trading Accounts’ by clients. SEBI's new security measure will allow customers to voluntarily freeze their trading accounts using various security measures, lowering the likelihood of unlawful trades.
Sebi said that there is an urgent need to implement a facility for blocking/freezing trading accounts. "This is necessary since the trading account may be vulnerable to a hack, which would result in the user being locked out of the account. The new procedure must be widely communicated as this precaution lowers the likelihood of unlawful trades," said Srinivasa Reddy, , Assistant Professor, T A Pai Management Institute (TAPMI), Marketing Management Area The SEBI initiative is worth appreciating for a facility of voluntary blocking of trading accounts, on the kind of facilities available for ATM Cards and Credit Cards users.
“The trigger has been the investors in the past raising issues of suspicious activities in their trading accounts but not having the means to address them promptly. The intent of SEBI is for furthering the ease of doing investments by investors and safeguarding their interests from the suspicious activities in their trading accounts," said Dr. Rajendra K Sinha, Professor & Chairperson, Centre of Excellence in Banking, Jagdish Sheth School of Management.
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