The move follows complaints against brokers and other market entities conducting transactions through accounts of their clients without the knowledge of the investor concerned.
While National Stock Exchange (NSE) would start sending transaction details to mobile phones and Email accounts of all retail investors with effect from October 15, the BSE would commence sending such SMS and Email trade alerts shortly.
The market regulator had proposed such a facility to alert investors about trades being conducted in their accounts more than a year ago in August 2011.
Consequently, BSE and NSE had asked their member brokers to upload mobile numbers and Email details of their clients on the exchange platforms to facilitate dissemination of such trade alerts.
However, the earlier directions provided an option wherein a broker can mention that certain client does not wish to avail the facility of such alerts.
In a fresh circular, Sebi has now asked the exchanges to provide the details of transactions via SMS/Email to all retail investors, based on the client details uploaded by the stock brokers on the stock exchange system.
Accordingly, the BSE has told its member brokers in a circular that it would "commence sending trade alerts through SMS and Email in new format shortly."
"In view of the above, all trading members are requested to upload mobile numbers and email IDs of their clients in UCC (Unique Client Code) database of the exchange, immediately," BSE said.
On the other hand, NSE has said it would start sending details of the transactions to all the retail investors, by the end of trading day, on the mobile number and/or email address which are registered by the trading members for their clients" on the exchange system.
Both the exchanges have asked their trading members to review the client details pertaining to mobile number and/or email address and update the same, wherever necessary.
The brokers have also been asked to "take utmost care while uploading client details including mobile number and email address" and to ensure the correctness of data.
The brokers are not allowed to upload the mobile number and Email details of their employees or other related persons on behalf of the clients, while separate mobile number/Email address is required for each client.
However, at the specific written request of a client, brokers can upload same mobile number/Email for more than one client provided such clients are from one family (comprising of self, spouse, dependent children and dependent parents).
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