Payment platforms and fintech companies are transitioning from password-based authentication to passkeys, biometrics, and other device-based verification methods. This shift improves security and user experience, but it creates a specific challenge for companies preparing for public listings: existing fraud liability frameworks don’t account for the new authentication architecture.
SEBI’s scrutiny of fintech IPOs now includes detailed questions about operational risk management, fraud-loss frameworks, and customer fund protection mechanisms. The authentication technology shift affects all three areas.
Why This Matters for Public Listings
When fintech companies file draft offer documents with SEBI, they’re required to disclose material risks in their “risk factors” section. Fraud risk and operational risk qualify as material for payment platforms, digital lending businesses, and similar fintech models.
