Sebi s move is also silent on the issue of what constitutes a recommendation by a broker online to his client and when and whether the same is based on intelligent parameters. The issues of how to prevent securities fraud and stock manipulation over the Internet have not been touched. No standards have been stipulated for protecting privacy. Security issues are extremely important and should be dealt with properly. Transactions on the Net have their own risks.
Internet provides immense opportunities for cyber fraud.
Sebi has not yet said how it propose to deals with this. Misrepresentation of information is another problem area. The authenticity of information provided online regarding securities is yet another grey area. It remains to be seen how investors will be able to check the authenticity of such information. Efforts should also be undertaken to control manipulation in net trading.