The Securities and Exchange Board of India (SEBI) has proposed a SIM-binding system to prevent unauthorized transactions in investors’ trading and demat accounts. This system will work similarly to Unified Payments Interface (UPI), where users can log in only if their unique client code (UCC) matches the linked mobile number and SIM.
SEBI aims to make trading account logins more secure with this new feature. The registered mobile device will become the key to log in to trading accounts on mobile and desktop. For desktop or laptop logins, users will need to scan a QR code that is proximity- and time-sensitive, similar to social media logins. Additionally, biometric authentication will be required on the primary SIM-bound device for extra security. If multiple family members share the same mobile number, they can link their accounts, but only if proper authorization is given.
SEBI has also planned fallback options for users who lose or change their mobile devices. These include a temporary lock feature to prevent unauthorized access and notifications about login attempts, including time and location details.
The implementation will be done in phases, starting with the top ten stock brokers. Initially, this security feature will be optional for investors.
This proposal comes after multiple cases of unauthorized access, SIM spoofing, wrong share transfers, and other security risks. By introducing SIM-binding authentication, SEBI aims to improve security, transparency, and investor protection in stock market trading. SEBI has invited public comments on this proposal by March 11. After reviewing feedback, SEBI will finalize the implementation plan.
