The Hindu Business Line : NSE to initiate security audit on brokerages

The National Stock Exchange of India Ltd (NSEIL) plans to conduct independent audit of security and brokerages to ensure security and regulatory compliance and business continuity processes.

What started as a voluntary move for the securities firm, with about 50 of them taking to audit and ensuring that the systems were in place, would now be driven by the NSEIL itself.

The Senior Vice-President of NSEIL, Mr M. Muralidharan, said as a part of this security initiative, it is proposed to take up about 25-30 big securities firms and study their internal audit practices.

The idea is to ensure that security is addressed proactively and becomes part of the systems and work culture.

Providing a regulators perspective for compliance, the Executive Director of SEBI, Mr M.S. Ray, said the volume and size of transactions online has gone up significantly opening up chances for vulnerability of the trading system.

As a part of SEBI Stock Brokers and Sub-Brokers Regulations Act, and later SEBI Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets Regulations Act, there has been effort to curb fraudulent transactions.

The policy on disclosures and internal procedures for prevention of insider trading calls upon listed entities to make proper disclosures to the stock exchanges.

The model code expects companies to ensure that the price sensitive information needs to be preserved, while providing for limited access to confidential information.

Speaking at a Confederation of Indian Industry event, the Director and Chief Technology Architect of Financial Technologies, Mr Dewang Narella, said the electronic trading system has brought about a paradigm shift in the way people trade. As there is convergence, the online trading platforms have been extended and are now being accessed through even smart phones.

But this has opened up vulnerabilities as the attackers are from all over the world.

However, the convergence has brought about a different challenge. Wherein as the volume has gone about multiplying, it has become easier for phising experts to camouflage the message, Mr Narella said and advised small and medium enterprises to address security proactively.

More Stories on : Financial Services | Economic Offences | Stock Exchanges

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NSE to initiate security audit on brokerages

Sah Petro jumps on growth hopes

Shyam Telecom relists, share price zooms

Kalyani Steel turns attractive

Colgate shines on bonus hopes

Volatile movement

FMCG, metals shine as Sensex scales another peak