To ensure that India is not left behind, Sebi has set up two working groups to look into the modalities of ushering in Net-trading in the country. Technology, connectivity, security, surveillance and monitoring are among the issues the groups will look into.

The first working group, headed by DB Phatak of IIT, Mumbai, will look into the standardisation of interface and security protocols for Internet trading at various levels. The group would also consist of representatives of the National, Mumbai and Calcutta Stock Exchanges, the departments of commerce, electronics and telecommunications, as well as the Reserve Bank of India.

The second working group will be headed by Sebi senior executive director LK Singhvi. This group will examine surveillance and monitoring related issues arising due to Internet trading.The groups are expected to submit their reports shortly.

A Sebi official said Internet trading will throw up a different type of regulatory challenges. While the frauds or abuse will be the same, but when it is done on Internet, the repercussions are different and the surveillance effort will require a qualitative change.

The meeting of the Sebi committee on Internet-based securities trading and services on Wednesday was also attended by senior officials from the Telecom Commission and other IT experts.