Sebi proposes directions to prevent demat account hacking after Zee Business' report

Securities Exchange Board of India (Sebi) swung into action today (Tuesday, February 18, 2025) as it proposes directions to prevent hacking of demat accounts after a report from Zee Business highlighted anomalies.

The market regulator is considering implementing the SIM binding system on the lines of UPI.

In the new system, the client's demat login and transaction can be done only after the verification of his unique code, device, and SIM.

The new system will provide protection from SIM spoofing, unauthorised transactions, wrong transfers, etc.

In the beginning, it is proposed that only the clients of 10 big brokers can use this facility.

It is not mandatory for all investors to use this facility as they may face problems.

Once the system is implemented, investors can login into their accounts after the verification of their unique code, device. and SIM.

The login facility will also be available in the future through facilities like biometrics and facial recognition.

Clients will also get information about the time and location of login into their account.

There will also be facilities like a temporary lock, logging out from other devices, limits on transactions, and control over trades made.