Brokers App will soon have a genuine verification tick at App Store, says SEBI WTM Varshney

Brokers App will soon have a genuine verification tick at App Store, says SEBI WTM Varshney

After launching SEBI Check and UPI Valid as part of measures to deal with cyber frauds, market regulator Securities and Exchange Board of India (SEBI) is working on a verification tick for brokers’ apps on the Play Store. SEBI Whole Time Member (WTM) Kamlesh Chandra Varshney said SEBI is in talks with Google for a verification tick mark for verified apps.

“We are also working with social media platforms that in the App Store, can they put a tick mark on registered brokers’ apps? So, Google has agreed,” Varshney said. When asked about the timeline, he said, “Probably in a month or two.” Varshney said this will help investors identify genuine verified broker apps and distinguish them from fake ones on app stores. Varshney was speaking at the BSE Brokers Forum (BBF) event, Capital Market Confluence, on Saturday.

He also said brokers will have to play a big role in the commodity market. SEBI wants to revive the commodity market, make it more liquid, and brokers will play a key role in that, he added. He pointed out that there are certain issues where brokers can play an important role due to constitutional limitations.

“There are challenges as brokers cannot do spot transactions in the commodity market. But farmers want money immediately, as for them that is more important—they cannot wait for future settlement,” he said. “Can brokers play an important role as mediators there? That is something to think about, and probably, if you reorient yourselves, you can see that brokers would play a very important role in the evolving commodity market.”

He also said that brokers have a huge market in small towns and cities. Citing a recent SEBI survey, Varshney said less than a percent of households are currently investing, but 22 percent of households have an interest in the capital market. He urged brokers to think about the kind of opportunity and growth possible if this 22 percent is tapped.

He said SEBI is going to expand its offices across state capitals. “I think brokers will once again play a very important role in getting new investors into the capital market,” he said.

Varshney also spoke about operational challenges in algorithmic trading. “There are some operational issues involved, but ultimately, we have to cross that bridge as well, because algorithmic trading is going to be the future. The use of technology and how to broadcast and talk themselves for that little future, we have given a timeline till December, and hopefully, we will sort out everything by then,” he said.

He also called on brokers to promote SEBI’s investor awareness initiatives.