However, the exact nature of the agreement between the broker and the client is still not clear. The modalities regarding the process has not yet been made clear by Sebi. The kind of security and safety measures brokers and clients need to take have not been specified. It has also not mandated that brokers need to maintain absolute transparency about information relating to securities supplied by them to the client online. It is not clear as to how disputes relating to authorisation of a particular broker by a client are going to be resolved.
Net trading is also likely to give rise to various disputes relating to conflict of jurisdiction.
It is possible for a client sitting in Guwahati to place an order with a broker in Bangalore through the Internet. However, in case of a dispute, which city s court would have the jurisdiction to settle them. 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.