BSE launches mobile-based trading

MUMBAI, INDIA: Bombay Stock Exchange (BSE), has become the first stock exchange to launch mobile trading in India. With the help of software vendors such as Marketplace Technologies, Religare Technova and Financial Techology, BSE commenced its mobile trading operations in a record time.

“Earlier trading on mobile was not permitted but early this month BSE had come out with a new circular for starting of mobile based stock trading in India. Those trading or broker houses which have fulfilled the system audits, regulatory and security norms, have been allowed to start providing mobile trading services to investors,” Ashishkumar Chauhan, BSE deputy CEO, told CyberMedia News.

According to Chauhan, the mobile trading platform have the similar security standards that are followed for the Internet based trading which includes secured socket layers (SSL) and 64-bit encryptions which needs to be provided by the brokers.

Thirty-three brokers have been approved by BSE to provide the mobile trading. However, Chauhan stressed that software application used for mobile trading has been tested and audited by stock exchanges and some 35 independent auditors will continue to verify the application on a regular basis for security and regulatory reasons.

Mobile-based trading is essentially an extension of Internet-based trading. It is similar to a client logging on to the broker’s trade portal, on Internet-enabled PC. BSE will provide its members a test-environment to test the solution and members can use existing IML ids.

Earlier this month, BSE had released a circular on the security norms for mobile trading which pointed that in case of failure of the wireless network, brokers will have to provide alternative means of communication for placing orders. The broker members are also required to intimate clients about possible risks, responsibilities and liabilities associated with mobile trading facility.

Brokers will also have to submit the system audit certificate on a yearly basis, duly certified by a CISA-certified or equivalent system auditor, to the exchanges' inspection department.

Speaking at the launch, BSE chairman S. Ramadorai said: "We have received an encouraging response with participation from over 30 brokerage firms. We believe that this will advance the development of financial inclusion through higher penetration of capital markets by leveraging the mobile telecom infrastructure in the country."

Motilal Oswal of Motilal Oswal Securities added: "With the kind of revolution mobile has brought to masses, it has become difficult to live without mobile for even a few seconds. With this initiative, India will be at par with global standards as far as e-commerce is concerned."