Securities & Exchange Board of India (SEBI) vide its circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008 as per Annexure I, has approved and given necessary guidelines for providing Direct Market Access (DMA).

Direct Market Access (DMA) facility through various connectivity modes permits the trading members of BSE to provide direct trading terminals to their DMA clients.

As quoted in the SEBI circular 'Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker. Some of the advantages offered by DMA are direct control of clients over orders, faster execution of client orders, reduced risk of errors associated with manual order entry, greater transparency, increased liquidity, lower impact costs for large orders, better audit trails and better use of hedging and arbitrage opportunities through the use of decision support tools / algorithms for trading.'

For compliance of the said circular, the guidelines are as follows:

Eligibility:

As per the SEBI Circular, DMA facility initially is being restricted to institutional clients only.

Operational Instructions

• Application for permission:

Trading Members of BSE desirous of facilitating DMA to their clients are required to make an application to BSE in the format appended as Annexure II.

• Member-client agreement:

Members will have to execute an agreement with clients who are availing the DMA facility. Members shall ensure that the agreement entered into with their clients for DMA facility should not be less stringent/contrary to the conditions prescribed in the model agreement as prescribed by BSE. Click on Annexure III to Download Model Agreement.

• Prerequisites to granting of permission for Direct Market Access (DMA):

BSE shall grant permission to members for Direct Market Access (DMA) on a case-to-case basis.

BSE shall provide a test environment during a pre-specified time, which shall be intimated shortly. The trading Members are required to test their software using the said test environment.

On satisfactory completion of testing on the test environment, the Members are required to give a demonstration to BSE of their Direct Market Access (DMA) facility.

The software and systems proposed for DMA shall be duly certified by BSE-empanelled System Auditor before grant of permission.

Only on fulfillment of the minimum requirements mentioned in the SEBI / BSE Circulars, permission for commencing Direct Market Access (DMA) would be granted to the Trading Member.

Pursuant to the Trading Member's activation on the DMA facility:

Trading members shall provide BSE with details of user-ids activated for DMA on a periodic basis as per format which shall be intimated separately.

Members at their end are required to comply fully with the operational specifications and risk management mentioned in the SEBI circular. Also, Members must be compliant with guidelines issued by BSE for DMA, from time to time.

For further clarifications, contact :

Business Operation Department
17th Floor, P J Towers
Dalal Street, Fort
Mumbai 400001

Tel:No: 022- 2272 5116/ 5873/ 5012

For Queries and Feedback
Trading APP
Email:trading.app@bseindia.com

Below are some of the documents issued by BSE pertaining to DMA and notified to members from time to time.