NATIONAL STOCK EXCHANGE OF INDIA LIMITED.

 

CAPITAL MARKET OPERATIONS

 

 

Circular No: NSE/CMO/061/2006

 

Download No: NSE/CMTR/8089

 

Date: November 10, 2006

 

Dear Members,

 

Internet Based trading services

 

The Exchange in adherence with SEBI circular no. SMDRP/Policy/Cir-6/00 dated January 31, 2000 has been granting approval for providing Internet based trading facility by the trading members (refer NSE circular ref no. NSE/CMO/0014/2000 dated May 12, 2000)

 

The Exchange has now been directed by SEBI, to modify the criteria for granting Internet Trading approval procedure to include the following point:

 

1. To undertake system audit of the trading members desirous of providing internet based trading facility by the Exchange nominated system auditors and report thereof submitted to the Exchange.

 

In view of the above, the Exchange has decided to change the approval process of the application for the internet based trading facility as below.

 

Sr. No.

Application procedure for seeking approval for Internet based trading facility

1.

Application and documents received from Trading member as per NSE circular ref no. NSE/CMO/0014/2000 dated May 12, 2000 and NSE/CMO/0235/2005 dated August 24, 2005 alongwith additional details as per format given in Annexure 1.

2.

Providing details of proposed system audit to the trading member by the Exchange

3.

System audit report submitted by the system auditor to the Exchange.

4.

Granting of provisional permission by the Exchange for Internet Based Trading

 

Further, trading members are requested to take note of these changes and are requested to provide the system auditors information and support as required during the system audit. The new approval procedure and charge structure (as per Annexure 2) will be applicable w.e.f. November 13, 2006 for the following scenarios:

 

 

Sr. No.

Scenario

New Product

Audited earlier by Exchange appointed auditor

Not audited earlier

1

First time IBT approval

Yes

-

-

2

Subsequent IBT approval

 

 

 

a

Same software with modifications for additional features

-

No

Yes

b

Vendor Change

-

Yes

Yes

 

For any further clarifications, trading members are advised to contact the following officials: Ms Madhvi Gogate/ Ms. Purvi Jobanputra / Mr. Pramod Das at 26598150.

For and on behalf of

National Stock Exchange of India Ltd.

 

Suprabhat Lala

Asst. Vice President Capital Market

 


 

 

Annexure 1 Letter format for providing additional details of Internet based trading

 

(To be given on letterhead of the Member)

 

Date:

To

The CTCL Department

National Stock Exchange of India Ltd

Bandra Kurla Complex

Mumbai 400 051

 

Sub: Additional details for Internet Based Trading

 

1. Please find the order routing server details as under:

Contact Person

Designation

Telephone Number

Complete address of the Internet based trading order routing server

 

 

 

 

 

  1. Internet Based trading product application details:

Sr.

Particulars

Details

1.

Already providing IBT to clients

YES / NO (Please select which is applicable)*

* In case of YES then provide following information

2.

Name of the existing empanelled vendor

 

3.

Product application type (Eg. Browser based product)

 

 

Regards,

 

Sd/


 

Annexure 2

 

Particulars

Members developing in-house

Members using software from empanelled vendors

One Time charge

Rs. 1,50,000/-

Nil

Annual charges

Rs. 50,000/-

Nil

Application processing charges for Internet based trading facility

Rs. 100,000/- *( for each set up separately)

Rs. 1,00,000/-* (for each set up separately)

* Charges will be directly debited from Exchange Dues Account