Mobile Trading in India: Way towards Financial Inclusion
With the improvement in technology every sector in the economy tries to take advantage. Indian stock market is not an exception too. After the introduction of Online trading by SEBI 10 years back, it has now taken one step forward by permitting the trading through mobile as on 29 August 2010. Regulators have offered various opportunities and services to Indian stock market from time to time. Mobile Trading is also one of that new trends significantly introduced in the capital market worldwide due to its wider scope for the investors as well as economy at large. It is planned to provide the up to date information to the retail investor which enables them to take right decision at right time. With the help of this application, users can watch market trends while using GPRS connection on their mobiles.
In 2009, the SEBI had issued a proposal which depicts the usage of wireless technology to trade in the stock. Now SEBI has finally converted that proposal into reality by allowing the retail investors to trade via their and laptops. It has been decided that SEBI registered brokers who provide Internet Based Trading as specified by SEBI circular no. SMDRP/POLICY/CIR-06/2000 dated January 31, 2000 shall be eligible to provide securities trading using wireless technology. All relevant requirements applicable to internet based trading shall also be applicable to securities trading using wireless technology.
It can be regarded as the great step which will automatically increase the volume of transactions in the stock exchanges. Also India has the lot of potential for mobile trading for having largest customers of technologically equipped mobile phones worldwide. Hence this move may enable the weak stock exchanges as well by increasing their volumes. The move is also significant for the fact that Indian Mobile market is growing at a tremendous rate as millions of subscribers added each month.
How does it work?...