TOR Major/ Remarks/observation of the Management comments in case

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Annexure - E
1. System Control and Capabilities
1(a) Order Tracking – The system auditor should verify Terms of Reference
system process and controls at API based terminals (TOR) for System
(CTCL / SOR/ IBT / STWT / ALGO / DMA etc.) Audit (Type III)
with regard to order entry, capturing of IP address of
order entry terminals, modification / deletion of
orders, status of the current order/outstanding orders Yes, we have verified the
and trade confirmation. process and found correct
1(b) Order Status/ Capture – Whether the system has Yes, system has capability to
capability to generate / capture order id, time generate /capture order ID ,
stamping, order type, scrip details, action, quantity, time stamping, order type,
price and validity etc. scrip details etc.
1(c) Rejection of orders – Whether system has capability
to reject orders which do not go through order level
validation at the end of the stock broker CTCL / Yes, system has capability to
IBT / SOR/ STWT / ALGO / DMA etc.. and at the reject orders which do not go
servers of Exchange. through order level validation
1(d) Communication of Trade Confirmation / Order
Status – Whether the system has capability to timely
communicate to Client regarding the Acceptance/ YES, System has facility to
Rejection of an Order / Trade via various media communicate regarding trade
including e-mail; facility of viewing trade log. acceptance/rejection by Email
1(e) Client ID Verification – Whether the system has
capability to recognize only authorized Client Orders
and mapping of Specific user Ids to specific
predefined location for proprietary orders. Yes, system has such capability
1(f) Order type distinguishing capability –Whether
system has capability to distinguish the orders
originating from CTCL / IBT / STWT / ALGO /
DMA/SOR etc.
Whether CTCL / IBT / STWT / ALGO / DMA /
SOR etc. orders are having unique flag/ tag as
specified by the Exchange and systems identify the
orders emanating from CTCL / IBT / STWT/ALGO/
DMA/SOR etc.. by populating the 15-digit CTCL
field in the order structure for every order.
Whether Broker is using similar logic/ priorities as
used by Exchange to treat CTCL / IBT / STWT
/DMA /SOR etc. client orders Yes,Confidential
system has such capability
1(g) The installed CTCL system parameters are as per YES, Order