The Securities and Exchange Board of India (Sebi) has requested that Google add verification tick marks for legitimate broking apps in an effort to stop fraudulent apps that pose as registered market intermediaries, Kamlesh Chandra Varshney, a longtime member, stated on Saturday.
Key Highlights
- SEBI directs Google to add verification ticks for registered broking apps on Play Store within two months to combat fraudulent trading applications.
- Initiative aims to help investors identify legitimate apps and avoid scams by providing a visual cue for authenticity.
Varshney stated that the tech giant had granted Sebi's request and that the feature could be available on Google's Play Store in two months while speaking at the Capital Market Confluence of the Bombay Stock Exchange Brokers' Forum.
"The apps of registered stock brokers will have a checkmark when you open the app store, which will once again help investors know which is the right app and which is fake," Varshney said, while outlining other Sebi initiatives aimed at curbing fraud and promoting investor awareness, such as the valid UPI initiative and the Sebi vs Scam campaign.
Focus on the revival of the commodity markets
He added that the regulator was also working to revive the commodity market and implement liquidity-enhancing measures.
"There are certain issues in commodities where we believe brokers can play an important role." Certain challenges arise as a result of constitutional limitations. We are unable to conduct spot commodity transactions because state governments are responsible for this. Farmers require payment immediately and cannot wait for future settlements. "Brokers will play a critical role in the evolving commodity market," Varshney said.
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Addressing Algo Trading Challenges
Varshney, who oversees key portfolios at Sebi, also discussed ongoing efforts to overcome challenges in implementing the algorithmic trading framework. The regulator had previously extended the implementation deadline due to operational issues.
"The immediate challenge is to make algorithmic trading operational. We must also cross that bridge because algorithmic trading will be the future. We have given a deadline of December, and hopefully we will have resolved everything by then," said the full-time member.
