Securities and Exchange Board of India (SEBI) vide its circular no.CIR/MRD/DP/25/2010 dated August 27, 2010 as per Annexure II, has approved and given necessary guidelines for providing “SECURITIES TRADING USING WIRELESS TECHNOLOGY which shall include devices such as mobile phone, laptop with data card, etc, that use Internet Protocol (IP).
For compliance of the said circular, the guidelines are as follows:
Eligibility:
As per the SEBI Circular, facility shall be provided by Bombay Stock Exchange Ltd members providing Internet Based Trading to all class of investors.
Application Process:
In order to avail the facility of Securities Trading Using Wireless Technology at Bombay Stock Exchange Ltd (BSE), trading members need to submit an application which will be followed by a system audit. The application should also include Vendor certificate (on the letterhead of the vendor) and self certification by the member (on the letter head of the member)
The format of the application is attached as Annexure I. (on the letter head of the member)
Pre Approval Requisites:
The software and the system proposed for Securities Trading Using Wireless Technology shall be duly certified by BSE empanelled System Auditor. Audit charges for the same will be debited to the Member’s settlement account pursuant to the system audit /approval by the exchange.
Only on fulfillment of the requirements mentioned in the SEBI / BSE Circulars, permission for commencing Securities Trading Using Wireless Technology would be granted to the Trading Member.
BSE shall provide a test environment for testing the Securities Trading Using Wireless Technology. The trading Members are required to test their software using the said test environment.
Members need to apply for a separate IML ID for Securities Trading Using Wireless Technology.
Post Approval Requisites:
In case of failure of the wireless network, alternative means of communication for placing orders should be available to the clients. Members at their end are required to comply fully with the operational specifications and risk management mentioned in the SEBI circular. Also, Members must comply with guidelines issued by BSE for Securities Trading Using Wireless Technology, from time to time.
Client Intimation:
Member needs to intimate clients about specifying possible risks, responsibilities and liabilities associated before providing the facility of Securities Trading using wireless Technology to the clients.
System Audit Submission frequency:
Once the approval is granted and the member goes live with the Securities Trading Using Wireless Technology, the member is required to submit the system audit certificate on yearly basis duly certified by the CISA certified or equivalent system auditor to inspection department. The notification will be issued to the market from time to time informing members about the submission of the same.
Unique Identifier:
BSE has given a unique identifier number as “5” for the orders placed through Securities Trading Using Wireless Technology, in order to differentiate the orders from Normal orders.
Format of Location ID which is a 16 digit code which is mentioned below:
From 1st digit to 6th digit – Pin Code e.g. - 400001
From 7th digit to 10th digit – Member Code e.g. – 9999
From 11th digit to 13th digit – Trader / User Id e.g. – 203
For 14th digit – Securities Trading Using Wireless Technology Order Id – (Fixed code) – 5
From 15th digit to 16th digit – Vendor Id e.g. – 19
Example:
If the IML terminal is located at Dalal Street, Mumbai, Pin Code is ‘400001’, and the unique Member Code is ‘9999’, the trader ID is ‘203’ and the order generating from wireless technology than the unique identifier in that would be ‘5’. Hence the 16 digit code would appear as ‘4000019999203519’, which starts with the Pin Code and ends with the Vendor Id.
For further clarifications, contact on below mentioned no. or undersigned:
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Help Desk
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022-6136 3175
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General Queries
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Manthan Desai
Mayuresh Samant
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022-2272 8890
022-2272 8355
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For any queries related to approval & going live process for SECURITIES TRADING USING WIRELESS TECHNOLOGY
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Chirag Sodawaterwalla
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022-2272 8156
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For documentation and approvals related queries
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Process Flow for Availing the facility
Step I: - Member to submit Annexure I (attached with Notice) to membership compliance department
Step II: - BSE appointed System auditor will do the system audit once the systems are in place at the member end and submit the report to BSE.
Step III: - After scrutinizing the audit report BSE will issue a letter of approval to the member subject to the observations / rectification as per system audit report by the system auditor.
Step IV: - Members need to apply for separate IML ID for Securities Trading Using Wireless Technology
Step V: -Member can start providing the above said facility to their clients.
Suniel Vichare Manthan B Desai
Member/ Institutional Sales Member/ Institutional Sales
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