Indian stock broking has shifted from call-and-trade to online platforms where investors can access their accounts using the login credentials provided by their broker.
SEBI proposed a framework on January 12th, 2024, wherein the investors' trading accounts will be voluntarily blocked upon the detection of any suspicious activity.
While investors may notice any suspicious activity, many brokers lack a system to take immediate action for account freeze/block. This creates a critical need for a mechanism similar to ATM and credit card blocking for enhanced security.
Request Methods: Define clear channels for investors to communicate a block request to their broker. Acknowledgement: Ensure immediate confirmation receipt of the request to the investor.
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