To enhance security measures for investors, leading bourse National Stock exchange (NSE) today said it will implement two-factor authentication for users of its web-based mutual fund platform from May 30.
Mutual Fund Service System (MFSS) is an online order collection system from NSE for its eligible members for placing subscription or redemption orders.
"In order to enhance the security measures, the exchange shall be implementing two factor authentication (2FA) for user of MFSS web-based application," the exchange said in a circular.
The new facility will be implemented with effect from May 30, 2016. The new system will be optional till June 3 but will become mandatory with effect from June 6.
Two-factor authentication is a security process in which the user provides two means of identification from separate categories of credentials.
Last year, NSE had launched a facility allowing market participants to place physical subscription, redemption and registration for Systematic Investment Plans (SIPs) on its web-based mutual fund platform.
Besides, it had introduced an overnight liquid transaction facility on the MF platform. The facility lets traders, especially small investors, invest even for a single day in liquid funds.
