Wireless trading, or mobile trading as it is popularly known, may soon see the light of day with market regulator Securities and Exchange Board of India (Sebi) planning to approve it shortly.
Sources said that Sebi is actively considering wireless trading and might even announce the same in its next board meeting. Sebi had earlier proposed a draft framework for wireless trading and invited inputs from industry. Currently, trading through mobiles is not allowed.
The industry feedback received by Sebi has been quite positive as a number of brokers feel it as another step towards opening the market further. “We are very optimistic about it. Currently, our clients can only get stock news and prices on mobiles, but with this move, they can trade real time in markets. We are ready with the platform and will launch as soon as Sebi approves it,” said Dinesh Thakkar, managing director, Angel Broking.
Brokers have been working with software vendors in readying the application and putting systems in place. Once mobile trading guidelines are approved by Sebi, the software will be vetted by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Once the exchanges approved it, trading can take off. NSE currently has a list of empanelled vendors, including Omnesys and Religare Technova, for online trading. It is yet to set up empanelled vendors for mobile trading.
For mobile trading, a software vendor will provide the application to a broker. Clients of the broker will have to install that particular software on their GPRS-enabled mobiles or PDAs.
The software will thus enable them to trade as well as access streaming quotes and stock information after confirming valid user names and passwords. All these will come with no extra cost.
The broker will not charge clients for trading through mobile, it is only the service provider who will charge the customer for using it. While security is one of the major issues to be resolved before allowing trading through mobiles, software vendors say that there are technologies which address this issue. Sebi too has provided for detailed consumer protection measures in its draft report.
“Adequate measures should be taken for user identification, authentication and access control using means such as user id, passwords, smart cards, biometric devices or other reliable means to prevent misuse of the facility by unauthorised persons,” said the Sebi concept paper.
“We have two types of front-end software under our ‘Trade Anywhere’ suite, which will enable wireless trading as well. However, it would be much more efficient with the introduction of 3G. For a day trader, where speed matters a lot, having 3G will give mobile trading the much needed boost. However, the current platform is suitable for retail investors,” said Sanjay Palode, managing director, Religare Technova.
Experts said that the software would cost in the range of Rs 50-60 lakh for a large broking house. “Cost is not an issue. The fact that it will facilitate trading on the move in itself will be a great relief for many people,” said Harshad Apte, Vice President (Strategy), India Infoline.
