Transactions in Securities
1 Answer

Transactions taking place in dematerialised securities in a stock exchange, either directly or through the Internet (as and when Web enabled transactions are made possible, in India), is a commercial activity taking place through the cyber medium. Therefore Cyber Law has become pertinent for the legal validation of transactions in electronic securities. The Cyber Law has been drafted by the Department of Electronics, Government of India, and is likely to be passed in the parliament very soon.

Securities transactions are worth millions of Rupees and any misadventure in the cyber medium can cause damages to the capital market in particular and to the economy in general. In this context, the extent of applicability of Cyber Law in transactions involving Soft Securities has to be analysed, and loopholes plugged. An in-depth study of the systematic risks involved in securities transactions in the cyber medium should be researched and suitable remedies suggested.

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