Stock exchanges to give daily SMS alerts to clients by Dec

Market regulator SEBI has asked stock exchanges to alert investors about details of their transactions every day through SMSes and e-mail, a move to check unauthorised trading by brokers.

"Stock exchanges shall send details of transactions to investors, by the end of trading day, through SMSes and e-mail alerts," the Securities and Exchange Board of India (SEBI) said in a circular.

Exchanges would have to implement the order by December 2 and it would be applicable to trading in cash and derivative segments.

SEBI said it had received complaints from investors against brokers about unauthorised trading in their accounts.

The regulator has issued the circular after consultation with the participants and bourses, including the Bombay Stock Exchange and the National Stock Exchange.

SEBI also directed the exchanges to provide a platform wherein brokers can upload client details like name, address, mobile number, e-mail and identification unique to every client.

The circular directed brokers to ensure that no two person have a common mobile number or e-mail.

SEBI has also asked exchanges to verify the details uploaded by brokers by sending SMSes, e-mail and letters to the correspondence address of clients.

Besides, exchanges would have to report discrepancies in data uploads to brokers. SEBI has allowed the exchanges to use a portion of the listing fees to meet the expenses for offering this facility.

SEBI has also asked exchanges to give implementation status of the circular in their monthly reports, besides giving wide publicity to this facility.