Call Recording for Stock Brokers to be Made Mandatory by SEBI

To stop unauthorised trading practices, it has been made mandatory for stockbrokers to record their calls with the clients, as evidence of the client placing that order.

“Further, wherever the order instructions are received from clients through the telephone, the stock broker shall mandatorily use telephone recording system to record the instructions and maintain telephone recordings as part of its records.” – SEBI

Evidence of such orders can also be kept in the form of physical records written and signed by the client, email from authorized email ID, logs of internet transactions, SMS logs or any other legally verifiable record.

“When dispute arises, the burden of proof will be on the broker to produce the above records for the disputed trades,” SEBI said in a notification.

This rule will come into effect from 1st January 2018. Earlier, this rule was proposed by SEBI in 2013 but was deferred due to opposition from brokerage associations.

Currently, the regulatory requirements in commodity derivative markets require the brokers to execute the trade only after keeping proof of the trader placing such an order in the form of sound recording. Now, sound / call recording has been made mandatory for stockbrokers as well, due to a considerable proportion of investor complaints about ‘unauthorised trades’ on their account without proper information by their brokers.

[Tweet “Call Recording to be made mandatory for #StockBrokers w.e.f Jan 1, 2018. Get #SEBI compliant #CallRecording “]

MyOperator for Stock Brokers

MyOperator provides call center software that consists of a call recording facility for stockbrokers at an economical price and zero capital expenditure. You will even get an automated record of all your call recordings at one place and you can access it from anywhere, anytime.

Another feature offered by MyOperator is the ability to keep a record of all your SMS logs in one place, including a toll free number, to serve as evidence of the orders placed by your client.

Get SEBI-compliant call recordings for stockbrokers today.