BSE issues guidelines for trading via mobile phones

Last month, the Securities and Exchange Board of India (SEBI) had issued necessary guidelines for providing "securities trading using wireless technology" which includes devices such as mobile phone and laptops with data card.

To avail of the facility, trading members will have to submit an application that will be followed by a system audit. The application should also include vendor certificate and self-certification by the member, a BSE statement said here.

As per the pre-approval requisites, the software and the system proposed for securities trading should be duly certified by the BSE-empanelled system auditor. Audit charges for the same will be debited to the member's settlement account pursuant to the system audit/approval by the exchange.

Only on fulfilment of the requirements mentioned in the Sebi/BSE circulars, permission for commencing securities trading using wireless technology would be granted, it said.

As per the approval requisites, BSE said in case of failure of the wireless network, alternative means of communication for placing orders should be available to the clients. Members at their end are required to comply with the operational specifications and risk management mentioned in the Sebi circular, besides following the BSE-prescribed rules.