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SEBI is planning a digital framework to safeguard investors from rising cyber frauds, introducing a centralised investor risk reduction access system. This initiative, revealed during a public consultation, aims to limit exposure to fraudulent online activities, particularly those related to depositories and brokers. It proposes blocking compromised accounts, securing investor credentials, and preventing simultaneous login attempts. SEBI's draft outlines how the system will respond in case of a breach, and feedback from stakeholders has been invited to finalise its structure.
SEBI is working on implementing a centralised risk reduction access mechanism to protect investors from digital threats. This step comes amid rising cases of cybercrime targeting financial accounts linked to securities trading. The framework proposes a secure interface for investors, allowing immediate response in case of suspicious activities. Advertisement
The system is expected to monitor unusual activity and provide investors with a way to block or freeze access to their accounts. For instance, if an investor's login credentials are suspected to be compromised, the centralised access will enable disabling of login sessions across platforms. This includes locking both trading and demat accounts when potential breaches are detected.
SEBI's plan also recommends integration with stock exchanges, depositories, and clearing corporations. The mechanism will identify red flags such as simultaneous login attempts, device mismatches, or high-risk transactions and trigger a temporary lockdown of investor access.
Additionally, if there is confirmed unauthorised activity, the proposed system would allow investors to contact intermediaries or use the centralised platform to revoke access and initiate recovery protocols. The market regulator's move aims to strengthen investor confidence amid a growing shift to digital investment tools.
Stakeholders have been invited to share feedback on the draft proposal, which also outlines timelines for implementation and coordination with market infrastructure institutions.
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