Call Recordings Were Made Compulsory By SEBI To Avoid Unauthorized Trading Activities

Mar 22, 2023

Call recordings have become an essential tool for the financial industry for preventing unauthorized trading activities. In today’s world, where financial transactions happen at lightning-fast speed, it is crucial to ensure that all trades are conducted legally and ethically. Call recording is one of the possible ways that financial institutions can use to protect themselves from fraudulent or illegal trading activities.

Importance of Call Recording For Avoiding Unauthorized Trading Activities

One of the primary benefits of the call recording is that it offers an audio record of all call conversations related to financial transactions. These audio recordings can be used later to verify the details of a trade, such as the number of shares traded, the price, the identity of the parties involved, and other details. In case of any dispute or investigation, these audio records can be used as evidence to support or refute any claims.

Another advantage of the call recording is its ability to monitor the activities of trades and other financial professionals. By listening to a recorded conversation, supervisors can identify any potential red flags or areas where additional security or training is required. This can definitely help prevent unauthorized trading activities & ensure that all trades are conducted in compliance with relevant laws and regulations.

Additionally, call recording can also assist financial institutions to comply with several regulatory requirements. For example, many financial regulatory agencies require firms to maintain records of all communications related to trading activities. Call recording provides an easy way to meet these requirements and also ensure that all necessary records are kept up-to-date.

SEBI’s Mandatory Move For Call Recording

The Securities and Exchange Board of India (SEBI) has recently imposed the compulsion on stock brokers to keep call records of clients who place orders via phone. To be imposed from 1st January 2018, a mandatory announcement has been made in order to prevent unauthorized trading activities.

The rule was proposed earlier in 2013 but it was turned down by the brokerage associations back then. The action has finally been implemented keeping in consideration the myriad of complaints related to unauthorized trades from customers. Brokers will have to keep proof of records placed by clients so that in case of a dispute, such recordings can be furnished in order to resolve it.

Knowlarity’s Call Recording Services

Thanks to the cloud telephony services like Knowlarity, such recordings can be effectively produced by stock brokers anytime, anywhere. This can help stock brokers to be in compliance with the SEBI notification easily with Knowlarity’s recording services. With seamless CRM integration, one can easily and automatically add consumer data.

Knowlarity helps to waive the concern of brokerage associations by providing its cloud telephony services at affordable prices. There would be no requirement for hardware setup and the cost associated with the same. Hence, stock brokers can go on to fulfill SEBI’s mandate conveniently and affordably.

There are many features that make Knowlarity a perfect pick among the other cloud telephony service providers.

Call Recording Solution

Other Helpful Features of Call Recording Solution

  • Cloud telephony services provide automated call recordings of all calls in one place which can easily be accessed over the cloud.
  • There are different parameters based on which you can go about searching for a particular call. The call recordings can easily be stored in customized locations.
  • The recordings can easily be kept or deleted based on the period of time which can be configured.
  • With dedicated call center solutions, stock brokers can not only have the mandatory call recordings but can also go about managing them effectively.
  • Also, to monitor and draw business insights one can make productive use of the call center analytics dashboard. It can help to observe call performance and trends.
  • Save on the bandwidth with our unique call center solutions and boost your productivity by over 25%. Hear from our esteemed clientele in order to have a better review of the services that stock brokers need for the announcement.

In Conclusion

Of course, call recording is not a foolproof solution for preventing unauthorized trading activities. However, it can be an effective tool when used in combination with other risk management strategies like monitoring trading activities, regular training, and robust internal controls.

Call recording can also be used with other cloud-based services/solutions. If you own a financial institution, it is important for you to understand the need for call recording and other cloud telephony solutions for your business along with the threats involved in the business.

The solutions offered by Knowlarity are not the ultimate solution for overcoming unauthorized trading activities but ensure a reduction in the same as the call recordings are available all the time and can be reviewed whenever needed.

Reach out to us if you are interested in buying call recording services or if you need more information.

Written By:  Manna Khare


Cloud Call Center
Cloud Communication
Cloud Telephony
Call Recording
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