BOI SHAREHOLDING LIMITED
Sub. : Registration of SLB Members and Unique Client ID for Securities Lending and Borrowing Scheme (SLBS)
With reference to BOISL’s circular – Notice no: 20080128-3 dated January 28, 2008, regarding the Securities Lending and Borrowing Scheme (SLBS), members of Bombay Stock Exchange Ltd. are hereby informed that the following procedure is, inter alia, to be followed in order to participate in the SLBS.
SLB Member’s Registration
Eligibility Criteria
As mentioned in the said circular, all trading/clearing members of Bombay Stock Exchange Ltd.(BSE) including Banks and Custodians shall be eligible to participate in SLBS. In order to become eligible to participate in SLBS, they shall have to register as ‘SLB Members’ in SLBS.
Procedure for SLB Member registration
For registration and to take part in the said SLBS, the Trading/Clearing/Custodian members of BSE shall be required to :
i) apply in writing to BOISL,
ii) enter into an agreement with BOISL in the prescribed format which is referred to as “Part A” of the Master Agreement. The format for the agreement is available on the website (www.bseindia.com) of BSE.
iii) deposit Base Minimum Capital of Rs.10 lacs in the prescribed form.
iv) fulfill other conditions as have been specified in the said circular of SEBI/BOISL and such other conditions as may be prescribed by BOISL from time to time.
Besides the above, the procedure for allotment of Unique Client ID would be as follows :
Unique Client ID
- Agreement with Clients
SLB Members desirous of lending or borrowing securities can do so either on their own account or on behalf of their clients. Prior to undertaking lending or borrowing of securities on account of clients, the SLB Member shall enter into an agreement with each client as per the format specified by BOISL. The same shall be referred to as “Part B” of the Master Agreement. The format of the agreement is available on the website of BSE. The Part A of the master agreement executed between the SLB Member and BOISL shall form part of the agreement between the SLB Member and the Client. The SLB Member shall be required to attach a certified copy of the Part A alongwith Part B.
- Unique Client ID
The SLB Member shall approach BOISL for allotment of Unique Client IDs for clients with whom it has entered into the agreement as mentioned above.
- Procedure for allotment of Unique Client ID
As required under the Securities Lending and Borrowing Scheme of SEBI, Unique IDs shall be allotted by BOISL to all clients who have registered with a SLB Member who in turn has registered with BOISL for the purpose.
It is mandatory for the SLB Members to use the Unique Ids allotted by BOISL while placing orders on their own account or on behalf of their clients under the Securities Lending and Borrowing Scheme.
In order to facilitate allotment of Unique IDs, the following electronic application process has been put in place
- SLB Members who have entered into an agreement with BOISL as required under the SLBS will be provided the facility to electronically apply for Unique IDs for the clients.
- SLB Members can apply for Unique IDs for any of their clients only after completing KYC formalities and after entering into agreement as required under the scheme.
- Client agreement date has to be mandatorily mentioned while electronically applying for Unique ID.
- For all clients, SLB Members are required to collect, verify PAN details before applying for Unique IDs.
- SLB Members shall not enter orders on behalf of their clients under the SLB scheme unless they have obtained Unique ID from BOISL.
- In addition, for all institutional clients (that is FIIs, Mutual Funds, Domestic Financial Institutions, Banks, Insurance Companies etc), SLB Members shall also have to upload Unique Client Code (UCC) allotted by BSE alongwith PAN in the UCC database.
- Institutional clients who do not have Unique Client Code (UCC) allotted by BSE may immediately approach NSCCL/BOISL through their custodian for the same.
SLB Members may please note that Unique ID allotted by BOISL would be 10 characters long. As has been mentioned earlier, SLB Members shall use this Unique ID while entering orders in the screen based order matching platform to execute lending and borrowing transactions under the SLBS.
A detailed UCC User Manual (Version 2.0) is available to all the SLB Members when logged on to the WebX system (www.bsewebx.co.in/admin). The file format for batch upload along with detailed description of the use of the system is also provided in the User Manual. The detailed User Manual is also available for download from the Dload32 option “UCC User Manual Ver.2.0”.
Mandatory use of Unique Client ID
It is mandatory for the participants to use the Unique Ids allotted by BOISL while placing orders on behalf of their clients under SLBS
In case of any clarifications, members are requested to contact the following :
|
Name |
Contact Nos. |
|
Mr.Amit Kadam – BSE, Membership |
8010 |
|
Mr.Mitesh Thakkar – BSE, Dept.of Surveillance & Supervison |
8880 |
|
Mr.Yogesh Bambardekar – BSE, Dept.of Surveillance & Supervison |
8286 |
|
Mr.Peter D’Souza – BOISL |
5042 |
|
Ms.Avani Kulkarni – BOISL |
5065 |
Wednesday, A. C. Gautam,
January 30, 2008 Managing Director - BOISL |