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BSE started mobile trading in India on 21st September 2010. This was followed by National Stock
Exchange later. The members of these two stock exchanges are providing these facilities to their clients
who can access the trading platform through their smart phones by entering a dedicated URL.

The stock exchanges have taken special care to provide high level security on this trading platform where
the transactions are encrypted. The users will have their id and password and there will be a second level
transaction password through a secured ID token. According to NSE guidelines, member brokers of the
bourse will have to submit an application seeking permission to commence securities trading using wireless
technology, which would be granted on a case-by-case basis. Once the Exchange grants approval, a broker
can start providing this mobile trading facility to clients.
These mobile trading portals of the brokers will have features like market watch, order book, and account
reports. This will make the trading simpler and easily accessible to clients even when they are on the move.

Most of the NSE brokers are using NOW platform for providing this service. Currently online trading
constitutes 15% – 20% of the total traded volume. There are nearly 700 million mobile users as compared
to 10 million internet users. This gives a great opportunity for the trading volume to grow with mobile
trading. The current volume of trading is 17759 cr in NSE and Rs 6425 cr in BSE. Mobile trading will
further boost the trading volume, particularly after the 3G services are launched in the country.

SEBI Guidelines

SEBI has issued guidelines vide its circular dated 27 August 2010, to the stock exchanges on mobile
trading. The stock exchanges are asked to ensure that brokers comply with secure access, encryption and
security of communication for internet based trading using wireless technology. The exchanges and brokers
should take adequate measures 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 facility
by unauthorised persons.

According to SEBI, unique identification number as given in case of internet based trading shall be made
applicable for mobile trading also. All transactions carried out in mobile trading need to be given a unique
identifier number, ’5′, in order to differentiate the orders from normal orders. In case of failure of the
wireless network, alternative means of communication for placing orders should be available.

The brokerage firms need to communicate to their clients the risks, responsibilities and liabilities associated
before providing the facility. As it may not be possible to give detailed information to the investor on a
mobile phone, brokerages should ensure that minimum information may be given with addresses of the
internet website where detailed information would be available.
SEBI directed that order confirmation, trade confirmation, modification and cancellation details should be
provided to the user every day. Session login details should not be stored on the mobile phones. Network
security protocols and interface standards should be as per prevalent industry standards and sound audit
trails should be available

“There are 500 million mobile users as compared to just 10 million broadband users. We see mobile trading
as a huge opportunity,” said Rangan co-founder & CEO of Chennai-based INXS Technologies.

“We already have enrolled 10,000 clients, who are now able to monitor stock prices and NSE’s index level
through our `MarketWatch’ product on their mobiles. These clients can immediately come to the mobile
trading facility, once we get the permission,” said C J George, managing director, Geojit BNP Paribas, a
leading retail brokerage (mydigitalfc.com)

Mr Motilal Oswal, Chairman and Managing Director at Motilal Oswal Financial Services, too said that a lot of
their clients access the platform to view details about scrips and also to view their portfolios.

“After the NSE started its system, we have seen more clients using the platform.”

Mr Nandip Vaidya, President - Broking, India Infoline, said mobile trading will take time to pick up, in the
same way that Internet trading did some years ago. “Once telecos unveil 3G services we could see more
clients using the platform.”


A key point argued in favour of mobile trading in India is that it will help the spread of
equity culture to more people. India has about 47 crore mobile connections, as per the
July figures of the Cellular Operators Association of India. Compared to this, demat
accounts, which more or less reflect the number of investors, are only 1.6 crore.
Brokerages hope to lure more mobile phone users into stock trading once the regulator
approves trading via cellphones

Speaking at a function early this year, Ravi Narain, managing director of National Stock
Exchange, said he expected mobile trading to be even more popular than internet trading
in India. “Looking at the mobile penetration in India, it is possible that mobile trading
will become more popular than online trading.” (caclubindia.com) (Financial chronicle

"With the introduction of mobile trading, broker's who were providing broking services
in cities and urban areas can now provide broking services in rural areas," BSE's Deputy
Chief Executive Officer Ashishkumar Chauhan said .

Chauhan pointed out that the mobile trading will be successful as the country has 65
crore mobile users as against only one crore internet users.