34402room no

CPA1L8 1 An CvL8vlLW Cl 1PL lnulAn

SLCu8l1lLS MA8kL1
11 MarkeL SegmenLs
SecurlLles markeLs provlde a channel for allocaLlon of savlngs Lo Lhose who have a
producLlve need for Lhem 1he securlLles markeL has Lwo lnLerdependenL and
lnseparable segmenLs (l) prlmary markeL and (ll) secondary markeL
111 rlmary MarkeL
rlmary markeL provldes an opporLunlLy Lo Lhe lssuers of securlLles boLh
CovernmenL and corporaLlons Lo ralse resources Lo meeL Lhelr requlremenLs of
lnvesLmenL SecurlLles ln Lhe form of equlLy or debL can be lssued ln
domesLlc /lnLernaLlonal markeLs aL face value dlscounL or premlum
1he prlmary markeL lssuance ls done elLher Lhrough publlc lssues or prlvaLe
placemenL under C o mpanles AcL 1936 an lssue ls referred as publlc lf lL
resulLs ln
alloLmenL of securlLles Lo 30 lnvesLors or more Powever when Lhe lssuer makes
an
lssue of securlLles Lo a selecL group of persons noL exceedlng 49 and whlch ls
nelLher
a rlghLs lssue nor a publlc lssue lL ls called a prlvaLe placemenL
11 2 Secondary MarkeL
Secondary markeL refers Lo a markeL where securlLles are Lraded afLer belng
offered
Lo Lhe publlc ln Lhe prlmary markeL or llsLed on Lhe SLock Lxchange Secondary
markeL comprlses of equlLy derlvaLlves and Lhe debL markeLs 1he secondary
markeL
ls operaLed Lhrough Lwo medlums namely Lhe CverLheCounLer (C1C) markeL
and
Lhe Lxchange1raded markeL C1C markeLs are lnformal markeLs where Lrades are
negoLlaLed
12 key lndlcaLors of SecurlLles MarkeL
121 lndex
An lndex ls used Lo glve lnformaLlon abouL Lhe prlce movemenLs of producLs ln
Lhe
flnanclal commodlLles or any oLher markeLs SLock markeL lndlces are meanL Lo
capLure Lhe overall behavlour of Lhe equlLy markeLs 1he sLock markeL lndex ls
creaLed by selecLlng a group of sLocks LhaL are represenLaLlve of Lhe whole markeL
or
a speclfled secLor or segmenL of Lhe markeL 1he bluechlp lndex of nSL ls S Cnx
nlfLy
122 MarkeL CaplLallsaLlon
MarkeL caplLallsaLlon ls deflned as value of all llsLed shares on Lhe counLry's
exchanges lL ls compuLed on a dally basls MarkeL caplLallsaLlon of a parLlcular
company on a parLlcular day can be compuLed as producL of Lhe number of
shares
ouLsLandlng and Lhe closlng prlce of Lhe share Pere Lhe number of ouLsLandlng
shares refers Lo Lhe lssue slze of Lhe sLock
MarkeL CaplLallsaLlon Closlng prlce of share * number of ouLsLandlng shares 10
Slmllarly Lo compuLe Lhe markeL caplLallzaLlon of all companles llsLed on an
Lxchange we aggregaLe Lhe markeL caplLallzaLlon of all Lhe companles Lraded on
Lhe
Lxchange
123 MarkeL CaplLallsaLlon 8aLlo
1he markeL caplLallzaLlon raLlo ls deflned as markeL caplLallzaLlon of sLocks
dlvlded
by Cu lL ls used as a measure of sLock markeL slze
124 1urnover
1urnover for a share ls compuLed by mulLlplylng Lhe Lraded quanLlLy wlLh Lhe
prlce aL
whlch Lhe Lrade Lakes place Slmllarly Lo compuLe Lhe Lurnover of Lhe companles
llsLed aL Lhe Lxchange we aggregaLe Lhe Lraded value of all Lhe companles Lraded
on
Lhe Lxchange
123 1urnover 8aLlo
1he Lurnover raLlo ls deflned as Lhe LoLal value of shares Lraded on a counLry's
sLock
Lxchange for a parLlcular perlod dlvlded by markeL caplLallzaLlon aL Lhe end of
Lhe
perlod lL ls used as a measure of Lradlng acLlvlLy or llquldlLy ln Lhe sLock markeLs
1urnover 8aLlo 1urnover aL Lxchange / MarkeL CaplLallsaLlon aL Lxchange
13 roducLs and arLlclpanLs
131 roducLs
llnanclal markeLs faclllLaLe reallocaLlon of savlngs from savers Lo enLrepreneurs
Savlngs are llnked Lo lnvesLmenLs by a varleLy of lnLermedlarles Lhrough a range
of
complex flnanclal producLs called securlLles" under Lhe SecurlLles ConLracLs
(8egulaLlon) AcL SC(8)A 1936 securlLles" lnclude (l) shares bonds scrlps
sLocks
or oLher markeLable securlLles of llke naLure ln or of any lncorporaLe company or
body corporaLe (ll) governmenL securlLles (lll) derlvaLlves of securlLles (lv) unlLs
of
collecLlve lnvesLmenL scheme (v) lnLeresL and rlghLs ln securlLles and securlLy
recelpL or any oLher lnsLrumenLs so declared by Lhe cenLral governmenL 8roadly
securlLles can be of Lhree Lypes equlLles debL securlLles and derlvaLlves
132 arLlclpanLs
1he securlLles markeL has essenLlally Lhree caLegorles of parLlclpanLs (l) Lhe
lnvesLors
(ll) Lhe lssuers (lll) Lhe lnLermedlarles (llgure 11) 1hese parLlclpanLs are
regulaLed
by Lhe SecurlLles and Lxchange 8oard of lndla (SL8l) 8eserve 8ank of lndla (88l)
MlnlsLry of CorporaLe Affalrs (MCA) and Lhe ueparLmenL of Lconomlc Affalrs
(uLA) of
Lhe MlnlsLry of llnance
llgure 11 MarkeL arLlclpanLs
MarkeL arLlclpanLs
lnvesLors
lssuers lnLermedlarles11
1able 11 below provldes Lhe lnformaLlon on MarkeL parLlclpanLs ln lndla
1able 11 MarkeL arLlclpanLs ln lndla
MarkeL arLlclpanLs
lnvesLors
lndlvldual lnvesLors
CorporaLe lnvesLors
lorelgn venLure CaplLal lnvesLors
llls
ueposlLorles
SLock Lxchanges
WlLh LqulLles 1radlng
WlLh uebL MarkeL 1radlng
WlLh uerlvaLlve 1radlng
WlLh Currency uerlvaLlves
8rokers
CorporaLe 8rokers
Subbrokers
orLfollo Managers
CusLodlans
8eglsLrars Lo an lssue Share 1ransfer AgenLs
rlmary uealers
MerchanL 8ankers
8ankers Lo an lssue
uebenLure 1rusLees
underwrlLers
venLure CaplLal lunds
MuLual lunds
CollecLlve lnvesLmenL Schemes
14 MarkeL SegmenLs and Lhelr roducLs
1he Lxchange (nSL) provldes Lradlng ln four dlfferenL segmenLs Wholesale uebL
MarkeL CaplLal MarkeL luLures and CpLlons and Currency uerlvaLlves SegmenL
as
deplcLed ln Lhe flgure 12 below
llgure 12 MarkeL SegmenLs
(l) Wholesale uebL MarkeL (WuM) SegmenL 1hls segmenL aL nSL commenced
lLs operaLlons ln !une 1994 lL provldes Lhe Lradlng plaLform for wlde range of
debL
MarkeL
SegmenLs
Wholesale
uebL
MarkeL
CaplLal
MarkeL
luLures and
CpLlons
Currency
uerlvaLlves 12
securlLles whlch lncludes SLaLe and CenLral CovernmenL securlLles 18llls Su
8onds CorporaLe debenLures Commerclal apers CerLlflcaLe of ueposlLs eLc
(ll) CaplLal MarkeL (CM) SegmenL 1hls segmenL aL nSL commenced lLs
operaLlons ln november 1994 lL offers a fully auLomaLed screen based Lradlng
sysLem known as Lhe naLlonal Lxchange for AuLomaLed 1radlng (nLA1) sysLem
varlous Lypes of securlLles eg equlLy shares warranLs debenLures eLc are
Lraded
on Lhls sysLem
(lll) luLures CpLlons (lC) SegmenL 1hls segmenL provldes Lradlng ln
derlvaLlves lnsLrumenLs llke lndex fuLures ln d e x opLlons sLock opLlons and
sLock
fuLures and commenced lLs operaLlons aL nSL ln !une 2000
(lv) Currency uerlvaLlves SegmenL (CuS) SegmenL 1hls segmenL aL nSL
commenced lLs operaLlons on AugusL 29 2008 wlLh Lhe launch of currency
fuLures
Lradlng ln uS uo llarlndlan 8upee (uSuln8) 1radlng ln oLher currency palrs llke
Luroln8 ound SLerllngln8 and !apanese ?enln8 was furLher made avallable
for
Lradlng ln lebruary 2010 'lnLeresL raLe fuLures' was anoLher producL made
avallable
for Lradlng on Lhls segmenL wlLh effecL from AugusL 31 2009
13 8eforms ln lndlan SecurlLles MarkeLs
Cver a perlod Lhe lndlan securlLles markeL has undergone remarkable changes
and
grown exponenLlally parLlcularly ln Lerms of resource moblllsaLlon
lnLermedlarles
Lhe number of llsLed sLocks markeL caplLallsaLlon Lurnover and lnvesLor
populaLlon
1he followlng paragraphs llsL Lhe prlnclpal reform measures underLaken slnce
1992
CreaLlon of MarkeL 8egulaLor SecurlLles and Lxchange 8oard of lndla (SL8l) Lhe
securlLles markeL regulaLor ln lndla was esLabllshed under SL8l AcL 1992 wlLh
Lhe
maln ob[ecLlve and responslblllLy for (l) proLecLlng Lhe lnLeresLs of lnvesLors ln
securlLles (ll) promoLlng Lhe developmenL of Lhe securlLles markeL and (lll)
regulaLlng Lhe securlLles markeL
Screen 8ased 1radlng rlor Lo seLLlng up of nSL Lhe Lradlng on sLock exchanges
ln lndla was based on an open ouLcry sysLem 1he sysLem was lnefflclenL and
Llme
consumlng because of lLs lnablllLy Lo provlde lmmedlaLe maLchlng or recordlng of
L rades ln order Lo provlde efflclency llquldlLy and Lransparency nSL lnLroduced
a
naLlonwlde onllne fully auLomaLed screen based Lradlng sysLem (S81S) on Lhe
CM
segmenL on november 3 1994
8educLlon of 1radlng Cycle Larller Lhe Lradlng cycle for sLocks based on Lype of
securlLles used Lo vary beLween 14 days Lo 30 days and Lhe seLLlemenL
lnvolved
anoLher forLnlghL 1he Lxchanges however conLlnued Lo have dlfferenL weekly
Lradlng cycles whlch enabled shlfLlng of poslLlons from one Lxchange Lo anoLher
lL
was made mandaLory for all Lxchanges Lo follow a unlform weekly Lradlng cycle ln
respecL of scrlps noL under rolllng seLLlemenL ln uecember 2001 all scrlps were
moved Lo rolllng seLLlemenL a n d Lhe seLLlemenL perlod was reduced
progresslvely
from 1+3 Lo 1+3 days lrom Aprll 2003 onwards 1+2 days seLLlemenL cycle ls
belng
followed
LqulLy uerlvaLlves 1radlng ln order Lo asslsL markeL parLlclpanLs ln managlng
rlsks beLLer Lhrough hedglng speculaLlon and arblLrage SC(8) A was amended ln
1993 Lo llfL Lhe ban on opLlons ln securlLles 1radlng ln derlvaLlves however Look
off 13
ln 2000 wlLh lndex fuLures afLer sulLable legal and regulaLory framework was puL
ln
place 1he markeL presenLly offers lndex fuLures lndex opLlons slngle sLock
fuLures
and slngle sLock opLlons
uemuLuallsaLlon PlsLorlcally sLock exchanges were owned conLrolled and
managed by Lhe brokers ln case of dlspuLes lnLegrlLy of Lhe sLock exchange
suffered nSL however was seL up wlLh a pure demuLuallsed governance
sLrucLure
havlng ownershlp managemenL and Lradlng wlLh Lhree dlfferenL seLs of people
CurrenLly all Lhe sLock exchanges ln lndla have a demuLuallsed seL up
uemaLerlallsaLlon As dlscussed before Lhe old seLLlemenL sysLem was lnefflclenL
due Lo (l) Lhe Llme lag for seLLlemenL and (ll) Lhe physlcal movemenL of paper
based
securlLles 1o obvlaLe Lhese problems Lhe ueposlLorles AcL 1996 was passed Lo
provlde for Lhe esLabllshmenL of deposlLorles ln securlLles wlLh Lhe ob[ecLlve of
ensurlng free LransferablllLy of securlLles wlLh speed and accuracy 1here are Lwo
deposlLorles ln lndla vlz nSuL and CuSL 1hey have been seL up Lo provlde
lnsLanLaneous elecLronlc Lransfer of securlLles uemaL (uemaLerlallsed)
seLLlemenL
has ellmlnaLed Lhe bad dellverles and assoclaLed problems 1o prevenL physlcal
cerLlflcaLes from sneaklng lnLo clrculaLlon lL has been made mandaLory for all
newly
lssued securlLles Lo be compulsorlly Lraded ln demaLerlallsed form now Lhe
publlc
llsLed companles maklng lC of any securlLy for 8s10 crore or more have Lo
make
Lhe lC only ln demaLerlallsed form
Clearlng CorporaLlon 1he anonymous elecLronlc order book ushered ln by Lhe
nSL
dld noL permlL members Lo assess credlL rlsk of Lhe counLerparLy and Lhus
necesslLaLed some lnnovaLlon ln Lhls area 1o address Lhls concern nSL had seL
up
Lhe flrsL clearlng corporaLlon vlz naLlonal SecurlLles Clearlng CorporaLlon LLd
(nSCCL) whlch commenced lLs operaLlons ln Aprll 1996
lnvesLor roLecLlon ln order Lo proLecL Lhe lnLeresL of Lhe lnvesLors and promoLe
awareness Lhe CenLral CovernmenL (MlnlsLry of CorporaLe Affalrs
1
) esLabllshed Lhe
lnvesLor LducaLlon and roLecLlon lund (lLl) ln CcLober 2001 WlLh Lhe slmllar
ob[ecLlves Lhe Lxchanges and SL8l also malnLaln lnvesLor proLecLlon funds Lo
Lake
care of lnvesLor clalms SL8l and Lhe sLock exchanges have also seL up lnvesLor
grlevance / servlce cells for redress of lnvesLor grlevance All Lhese agencles and
lnvesLor assoclaLlons also organlse lnvesLor educaLlon and awareness
programmes
CloballsaLlon lndlan companles have been permlLLed Lo ralse resources
overseas
Lhrough lssue of Au8s Cu8s lCC8s and LC8s lurLher llls have been permlLLed
Lo
lnvesL ln all Lypes of securlLles lncludlng governmenL securlLles and Lap Lhe
domesLlc
markeL 1he lnvesLmenLs by llls en[oy full caplLal accounL converLlblllLy 1hey can
lnvesL ln a company under porLfollo lnvesLmenL rouLe upLo 24 of Lhe pald up
caplLal
of Lhe company 1hls can be lncreased up Lo Lhe secLoral cap/sLaLuLory celllng as
appllcable Lo Lhe lndlan companles concerned by passlng a resoluLlon of lLs 8oard
of
ulrecLors followed by a speclal resoluLlon Lo LhaL effecL by lLs general body 1he
lndlan sLock exchanges have been permlLLed Lo seL up Lradlng Lermlnals abroad
1he
Lradlng plaLform of lndlan exchanges ls now accesslble Lhrough Lhe lnLerneL from
anywhere ln Lhe world 88l permlLLed Lwoway funglblllLy for Au8s / Cu8s whlch
means LhaL Lhe lnvesLors (forelgn lnsLlLuLlonal or domesLlc) who hold Au8s /
Cu8s
can cancel Lhem wlLh Lhe deposlLory and sell Lhe underlylng shares ln Lhe markeL

1
Larller known as ueparLmenL of Company Affalrs14
Launch of lndla vlx
2
volaLlllLy lndex ls a measure of markeL's expecLaLlon of
volaLlllLy over Lhe near Lerm lL measures Lhe amounL by whlch an underlylng
lndex
ls expecLed Lo flucLuaLe ln Lhe near Lerm based on Lhe order book of Lhe
underlylng
lndex opLlons lndla's flrsL volaLlllLy lndex lndla vlx (based on Lhe nlfLy 30 lndex
CpLlon prlces) was launched by nSL ln Aprll 2008
ulrecL MarkeL Access ln Aprll 2008 SL8l allowed Lhe dlrecL markeL access (uMA)
faclllLy Lo Lhe lnsLlLuLlonal lnvesLors uMA allows brokers Lo offer Lhelr respecLlve
cllenLs dlrecL access Lo Lhe Lxchange Lradlng sysLem Lhrough Lhe broker's
lnfrasLrucLure wlLhouL manual lnLervenLlon by Lhe broker
Launch of SecurlLles Lendlng 8orrowlng Scheme ln Aprll 2008 Lhe
SecurlLles Lendlng 8orrowlng mechanlsm was allowed lL allows markeL
parLlclpanLs Lo Lake shorL poslLlons effecLlvely wlLh less cosL
Launch of Currency luLures Cn AugusL 29 2008 nSL launched Lradlng ln
currency fuLure conLracLs ln Lhe uSuln8 palr for Lhe flrsL Llme ln lndla 1radlng ln
oLher currency palrs llke Luro ln8 ound SLerllng ln8 and !apanese ?en was
furLher made avallable for Lradlng ln March 2010
AS8A AppllcaLlon SupporLed by 8locked AmounL (AS8A) ls a ma[or prlmary
markeL
reform lL enables lnvesLors Lo apply for lCs / lCs and rlghLs lssues wlLhouL
maklng a paymenL lnsLead Lhe amounL ls blocked ln lnvesLors' own accounL and
only an amounL proporLlonaLe Lo Lhe shares alloLLed goes ouL when alloLmenL ls
flnallzed
Launch of lnLeresL 8aLe luLures Cn AugusL 31 2009 fuLures on lnLeresL raLe
was launched on Lhe naLlonal SLock Lxchange
lssue of CaplLal and ulsclosure 8equlremenLs (lCu8) 8egulaLlons 2009 ln
AugusL 2009 Lhe SL8l lssued lssue of CaplLal and ulsclosure 8equlremenLs (lCu8)
8egulaLlons 2009 replaclng Lhe ulsclosure and lnvesLor roLecLlon (ul)
Culdellnes
2000 lCu8 8egulaLlons 2009 would govern all dlsclosure norms regardlng lssue
of
securlLles

2
vlx" ls a Lrademark of Chlcago 8oard CpLlons Lxchange lncorporaLed (C8CL)
and
SLandard oor's has granLed a llcense Lo nSL wlLh permlsslon from C8CL Lo
use such mark
ln Lhe name of Lhe lndla vlx and for purposes relaLlng Lo Lhe lndla vlx13
CPA1L8 2 18AulnC MLM8L8SPl
21 SLock 8rokers
A sLock broker ls an lnLermedlary who arranges Lo buy and sell securlLles on Lhe
behalf of cllenLs (Lhe buyer and Lhe seller) Accordlng Lo SL8l (SLock 8rokers and
Sub8rokers) 8egulaLlons 1992 a sLockbroker ls member of a sLock exchange
and
requlres Lo hold a cerLlflcaLe of reglsLraLlon from SL8l ln order Lo buy sell or deal
ln
securlLles SL8l granLs a cerLlflcaLe Lo a sLock broker sub[ecL Lo Lhe condlLlons
LhaL
Lhe sLock broker
(a) holds Lhe membershlp of any sLock exchange
(b) should ablde by Lhe rules regulaLlons and byelaws of Lhe sLock
exchange or sLock exchanges of whlch he ls a member
(c ) should obLaln prlor permlsslon of SL8l Lo conLlnue Lo buy sell or deal
ln securlLles ln any sLock exchange ln case of any change ln Lhe sLaLus
and consLlLuLlon
(d) should pay Lhe amounL of fees for reglsLraLlon ln Lhe prescrlbed
manner and
(e) should Lake adequaLe sLeps for redress of grlevances of Lhe lnvesLors
wlLhln one monLh of Lhe daLe of Lhe recelpL of Lhe complalnL and keep
SL8l lnformed abouL Lhe number naLure and oLher parLlculars of Lhe
complalnLs
Whlle conslderlng Lhe appllcaLlon of an enLlLy for Lhe granL of reglsLraLlon as a
sLock
broker SL8l checks ouL lf Lhe appllcanL
(a) ls ellglble Lo be admlLLed as a member of a sLock exchange
(b) has Lhe necessary lnfrasLrucLure llke adequaLe offlce space equlpmenL
and manpower Lo effecLlvely dlscharge hls acLlvlLles
(c ) has any pasL experlence ln Lhe buslness of buylng selllng or deallng ln
securlLles
(d) ls sub[ecLed Lo any dlsclpllnary proceedlngs under Lhe rules
regulaLlons and byelaws of a sLock exchange wlLh respecL Lo hls
buslness as a sLockbroker lnvolvlng elLher hlmself or any of hls
parLners dlrecLors or employees
22 nSL Membershlp
1 here are no enLry/exlL barrlers Lo Lhe membershlp of nSL Anybody can become
a
member by complylng wlLh Lhe prescrlbed ellglblllLy crlLerla and exlL by
surrenderlng
membershlp wlLhouL any hldden cosL
1he members are admlLLed Lo dlfferenL segmenLs of Lhe Lxchange sub[ecL Lo Lhe
provlslons of Lhe SecurlLles ConLracLs (8egulaLlon) AcL 1936 Lhe SL8l AcL 1992
Lhe rules clrculars noLlflcaLlons guldellnes eLc lssued hereunder and Lhe
byelaws 16
rules and regulaLlons of Lhe Lxchange 1he Lradlng members of nSL have cerLaln
beneflLs whlch lncludes
(a) Access Lo a naLlonwlde Lradlng faclllLy for equlLles derlvaLlves debL
and hybrld lnsLrumenLs / producLs
(b) AblllLy Lo provlde a falr efflclenL and LransparenL securlLles markeL Lo
Lhe lnvesLors
(c) use of sLaLeofLhearL elecLronlc Lradlng sysLems and Lechnology
(d) ueallng wlLh an organlsaLlon whlch follows sLrlcL sLandards for Lradlng
seLLlemenL aL par wlLh Lhose avallable aL Lhe Lop lnLernaLlonal
bourses and consLanLly sLrlves Lo move Lowards a global markeLplace
ln Lhe securlLles lndusLry
221 new Membershlp
1he persons ellglble Lo become Lradlng members of Lxchange are
(a) lndlvlduals
(b) arLnershlp flrms reglsLered under Lhe lndlan arLnershlp AcL 1932
( c ) lnsLlLuLlons lncludlng subsldlarles of banks engaged ln flnanclal
servlces
(d) 8anks for Currency uerlvaLlves SegmenL
(e) 8ody corporaLes lncludlng companles as deflned ln Lhe Companles AcL
1936 A company ls ellglble Lo be admlLLed as a member lf
l) lL ls formed ln compllance wlLh provlslons of SecLlon 12 of Lhe
Companles AcL 1936 whlch menLlons abouL Lhe mode of formlng
lncorporaLed company
ll) lL complles wlLh Lhe flnanclal requlremenLs and norms as may be
speclfled by SL8l
lll) 1he dlrecLors of Lhe company shouldn'L have been dlsquallfled for
belng members of a sLock exchange and should noL have held Lhe
offlces of Lhe dlrecLors ln any company whlch had been a member
of Lhe sLock exchange and had been declared defaulLer or expelled
by Lhe sLock exchange and
(f) Such oLher persons or enLlLles as may be permlLLed from Llme Lo Llme
by 88l/SL8l under Lhe SecurlLles ConLracLs (8egulaLlons) 8ules 1937
Membershlp for ulfferenL SegmenLs aL nSL
ersons or lnsLlLuLlons deslrous of securlng admlsslon as members (sLock
brokers)
on Lhe Lxchange may apply for membershlp on any one of Lhe followlng
segmenL
groups
(a) Wholesale uebL MarkeL (WuM) SegmenL
(b) CaplLal MarkeL (CM) segmenL
(c) CaplLal MarkeL (CM) and Wholesale uebL MarkeL (WuM) segmenL
(d) CaplLal MarkeL (CM) and luLures CpLlons (lC) segmenL
(e) CaplLal MarkeL (CM) luLures CpLlons (lC) segmenL and Wholesale
uebL MarkeL (WuM) segmenL
(f) Currency uerlvaLlves (Cu) segmenL wlLh or wlLhouL Lhe above
menLloned segmenLs
(g) Clearlng Membershlp of naLlonal SecurlLles Clearlng CorporaLlon LLd
(nSCCL) as a rofesslonal Clearlng Member (CM) rofesslonal
Clearlng Members do noL Lrade buL only clear and seLLle Lrades 17
execuLed by oLher Lradlng members (1Ms) rofesslonal clearlng
membershlp ls only appllcable for Lhe lC a n d Currency uerlvaLlves
segmenLs

ln addlLlon Lo Lhe Lradlng membershlp ln Lhe lC segmenL Lhe Lradlng member
can
also Lake Lwo Lypes of clearlng membershlp ln Lhe lC SegmenL le as a clearlng
member and self clearlng member 1he self clearlng members clear and seLLle Lhe
Lrades execuLed by Lhem only elLher on Lhelr accounL or on accounL of Lhelr
cllenLs
1radlng members cum clearlng members can clear and seLLle Lhelr own Lrades as
well as Lrades of oLher Lradlng members
1radlng members reglsLered ln lC segmenL and C u segmenL are ellglble Lo
Lrade ln
lnLeresL raLe fuLures markeL
222 LllglblllLy CrlLerla for Membershlp aL nSL
1he sLandards for admlsslon of members are lald down by Lhe Lxchange ln Lerms
of
corporaLe sLrucLure (shareholdlng paLLern) caplLal adequacy (ald up caplLal) neL
worLh lnLeresL lree SecurlLy ueposlL (llSu) CollaLeral SecurlLy ueposlL (CSu)
Lrack
record educaLlon experlence eLc 1hls ls done Lo ensure quallLy broklng servlces
so
as Lo bulld and susLaln confldence among lnvesLors ln Lhe Lxchange's operaLlons
CorporaLe SLrucLure (Shareholdlng aLLern)
SecurlLles markeLs are lnherenLly volaLlle and rlsky and hence rlsk conLalnmenL
mechanlsms are puL ln place by Lhe sLock exchange Cne such rlsk conLalnmenL
Lool
ls Lhe concepL of 'uomlnanL romoLer/Shareholder Croup' whlch ls very unlque
for
appllcanLs acqulrlng membershlp on Lhe nSL 1he shareholders holdlng Lhe
ma[orlLy
of shares have a domlnanL role ln Lhe affalrs of Lhe company ln case of any
defaulL
by Lhe broklng enLlLy Lhe Lxchange should be able Lo ldenLlfy and Lake acLlon
agalnsL Lhe persons who are behlnd Lhe company 1he Lxchange Lherefore needs
Lo
know Lhe background flnanclal soundness and lnLegrlLy of Lhe shareholders
holdlng
such conLrolllng lnLeresL Pence durlng Lhe admlsslon process (explalned ln Lhe
laLer
secLlon of Lhe book) Lhe domlnanL shareholders are called for an lnLervlew wlLh
Lhe
Membershlp 8ecommendaLlon CommlLLee (M8C)
uomlnanL romoLer norms are appllcable Lo all Lradlng members 1he norms
relaLlng
Lo domlnanL promoLers falls ln dlfferenL caLegorles such as unllsLed corporaLe
Lradlng
member llsLed corporaLe Lradlng member corporaLe shareholders banks cenLral
or
sLaLe governmenL owned flnance and developmenL lnsLlLuLlons and forelgn
enLlLlLes
whlch are glven as under
(l) unllsLed corporaLe Lradlng member ln case of an unllsLed corporaLe Lradlng
member Lhere are Lhree condlLlons under whlch Lhe corporaLe Lradlng member
wlll
be ellglble Lo consLlLuLe domlnanL promoLer group 1hese condlLlons are glven
below
lf a person holds 31 of shares ln Lhe Lradlng member corporaLe on hls own or
LogeLher wlLh
(a) hls relaLlves as deflned under Companles AcL 193618
(b) person(s) falllng wlLhln Lhe deflnlLlon of 'conLrol'
3
under Lhe SL8l
(SubsLanLlal AcqulslLlon of Shares and 1akeovers) 8egulaLlons
1997
(c) Lhe supporL of sLraLeglc lnvesLors ln such corporaLe Lradlng member
(SLraLeglc lnvesLors mean Lhe corporaLes or lndlvldual lnvesLors LhaL
add value Lo lnvesLmenLs Lhey make Lhrough lndusLry and personal
Lles LhaL can asslsL companles ln ralslng addlLlonal caplLal lncludlng
flnanclal lnvesLors venLure caplLallsLs and oLhers who lnvesL prlmarlly
wlLh Lhe alm of generaLlng a large reLurn on Lhelr lnvesLmenL)
(ll) LlsLed corporaLe Lradlng member ln case of llsLed corporaLe Lradlng
members any person(s) ldenLlfled as promoLer ln Lhe offer documenL or ln any
documenL for offer of securlLles Lo Lhe publlc or exlsLlng shareholders or ln Lhe
shareholdlng paLLern dlsclosed by Lhe corporaLe Lradlng member under Lhe
provlslons of Lhe LlsLlng AgreemenL whlchever ls laLer would be ellglble Lo
consLlLuLe domlnanL promoLer group
(lll) CorporaLe shareholders Lo be ldenLlfled as domlnanL shareholders
CorporaLe shareholder ls allowed Lo be ldenLlfled as domlnanL shareholders
(uomlnanL romoLer Croup uC) of a corporaLe Lradlng member provlded LhaL
Lhe
corporaLe shareholder ldenLlfles any person or persons as Lhelr domlnanL
promoLer
group as per Lhe aforesald norms appllcable Lo Lhe corporaLe Lradlng member ln
case Lhe domlnanL promoLer group conslsLs of more Lhan one corporaLe
shareholder
Lhe domlnanL promoLer group should be ldenLlfled separaLely for each such
corporaLe
shareholder
(lv) 8anks cenLral or sLaLe governmenL owned flnance and/or developmenL
lnsLlLuLlons 1he followlng enLlLles are allowed Lo be ldenLlfled as domlnanL
shareholder(s) provlded Lhey have a neLworLh of aL leasL 8s30 crores
(a) Scheduled 8anks
(b) CenLral or SLaLe CovernmenL owned llnance and/or uevelopmenL
lnsLlLuLlons
( c ) Any flnanclal lnsLlLuLlon reglsLered and regulaLed by any regulaLory
auLhorlLy such as 88l SL8l l8uA
(d) Any oLher enLlLy LhaL ls flL Lo be ldenLlfled as domlnanL shareholder ln
Lhe oplnlon of relevanL auLhorlLy
(v) lorelgn LnLlLles lorelgn enLlLles are allowed Lo Lake Lradlng membershlp of
Lhe Lxchange Lhrough Lhelr lndlan subsldlary under Lhe auLomaLlc approval rouLe
permlLLed by Lhe governmenL sub[ecL Lo compllance wlLh Lhe followlng
guldellnes of
Lhe 88l ln Lhls regard
(a) 1he promoLlng forelgn enLlLy or lLs subsldlary should be elLher a bank or
lnsurance organlsaLlon regulaLed by Lhe CenLral 8ank or such oLher approprlaLe
regulaLory auLhorlLy of LhaL counLry
Cr

3
Pere 'conLrol' means Lhe rlghL Lo appolnL ma[orlLy of dlrecLors or Lo conLrol Lhe
managemenL
or pollcy declslons by vlrLue of Lhe shareholdlng or managemenL rlghLs19
1he promoLlng forelgn enLlLy or lLs subsldlary should be broklng house/
parLlclpanL ln
Lhe securlLles markeL LhaL ls reglsLered or regulaLed by Lhe relevanL regulaLory
auLhorlLy of LhaL counLry and LhaL Lhe relevanL auLhorlLy should be a member of
lnLernaLlonal CrganlsaLlon of SecurlLles Commlsslon (lCSCC) 1he enLlLy should
have
a sound Lrack record
Cr
1he promoLlng forelgn enLlLy ls one whose domesLlc arm or subsldlary ls
reglsLered
wlLh SL8l for parLlclpaLlon ln any domesLlc venLure for cusLodlal or AsseL
ManagemenL servlces
(b) 1he promoLlng forelgn enLlLy shall hold dlrecLly or lndlrecLly noL less Lhan 31
of Lhe conLrolllng sLake ln Lhe appllcanL company proposlng Lo Lake Lhe Lradlng
membershlp of Lhe Lxchange
(c) 1he neL worLh of Lhe enLlLy havlng conLrolllng sLake ln Lhe appllcanL company
or Lhe promoLlng forelgn enLlLy should be aL leasL 8s 30 Crores
A forelgn enLlLy ls allowed Lo become parL of Lhe domlnanL promoLer group of an
exlsLlng Lradlng member corporaLe provlded lL meeLs Lhe domlnanL promoLer
group
norms as appllcable Lo lndlan enLlLles ll8 (lorelgn lnvesLmenL romoLlon 8oard)
norms / 88l norms and any oLher requlremenLs of Lhe Lxchange / SL8l as may be
appllcable from Llme Lo Llme
CorporaLe Lradlng members wlll also be allowed Lo change Lhelr shareholdlng
paLLern
so long as such change ls wlLhln Lhe above norms and Lhe exlsLlng uomlnanL
romoLer Croup (uC) conLlnues Lo hold conLrolllng lnLeresL and prlor approval
from
Lhe Lxchange ls obLalned Cnce a uC ls ldenLlfled durlng admlsslon Lhe same has
Lo be malnLalned aL all polnLs of Llme ln case of any change ln Lhe uC Lhe
Lradlng
member ls requlred Lo seek fresh approval of Lhe Lxchange as lL ls done aL Lhe
Llme
of admlsslon of new Lradlng member and rules relaLlng Lo Lhe same apply lnLer
se
Lransfer of shareholdlng among Lhe domlnanL promoLers however wlll be exempL
from Lhe formallLles as requlred ln case of new Lradlng membershlp Any changes
ln
Lhe shareholdlng requlre prlor approval from Lhe Lxchange excepL ln case of
shareholdlng changes relaLed Lo publlc shareholdlng ln a llsLed company
lallure Lo malnLaln Lhe requlred level of shareholdlng by uC ls LreaLed as a
breach
of Lhe conLlnulng membershlp norms and LanLamounLs Lo reconsLlLuLlon of Lhe
Lradlng member corporaLe 1hls ls because Lhe exlsLlng uC would no longer hold
conLrolllng lnLeresL ln Lhe Lradlng member corporaLe or alLernaLlvely a new group
would have emerged wlLh conLrolllng sLake ln such case Lhe Lxchange can
lnlLlaLe
dlsclpllnary acLlon lncludlng wlLhdrawal of Lradlng faclllLy of such Lradlng
members
neLworLh and CLher ueposlL 8equlremenLs
1he neLworLh of Lhe member ls calculaLed as summaLlon of CaplLal and free
reserves less non allowable asseLs non allowable asseLs lnclude flxed asseLs
pledged securlLles member's card nonallowable securlLles (unllsLed securlLles)
bad
dellverles doubLful debLs and advances prepald expenses lnLanglble asseLs and
30 markeLable securlLles 20
ueposlL requlremenLs are of Lwo Lypes le lnLeresL lree SecurlLy ueposlL
( llSu) and CollaLeral SecurlLy ueposlL (CSu) llS u has Lo be ln llquld cash whlle
C Su can be ln cash or noncash form Cash componenL means cash bank
guaranLees flxed deposlL recelpLs unlLs of money markeL muLual fund and gllL
funds
and any oLher form of collaLeral as may be prescrlbed from Llme Lo Llme non
cash
componenL means all oLher forms of collaLeral deposlLs llke deposlL of approved
llsL
of demaL securlLles and unlLs of Lhe oLher muLual funds and any oLher form of
collaLeral as may be prescrlbed from Llme Lo Llme
1he ellglblllLy crlLerla for corporaLes lndlvlduals and parLnershlp flrms for
dlfferenL
segmenLs of Lhe Lxchange are explalned ln 1able 21 and 22 below21
neL worLh requlremenL for rofesslonal Clearlng members ln lC segmenL ls 8s
300 lakhs lurLher a
rofesslonal Clearlng member needs Lo brlng llSu of 23 lakhs wlLh nSCCL and
CollaLeral SecurlLy ueposlL
(CSu) of 23 lakh wlLh nSCCL as deposlLs
*AddlLlonal llSu of 23 lakhs wlLh nSCCL ls requlred for 1radlng and Clearlng
members (1MCM) and for
1radlng and Self clearlng members (1M/SCM)
** AddlLlonal CollaLeral SecurlLy ueposlL (CSu) of 23 lakhs wlLh nSCCL ls requlred
for 1radlng and
Clearlngmembers (1MCM) and for 1radlng and Self clearlng members (1M/SCM)
ln addlLlon a member
clearlng for oLhers ls requlred Lo brlng ln llSu of 8s 2 lakh and CSu of 8s 8 lakh
per Lradlng member he
underLakes Lo clear ln Lhe lC segmenL
1able 21 LllglblllLy CrlLerla for MembershlpCorporaLes (AmounL ln 8s Lakh)
arLlculars/ SegmenLs CM CM and lC WuM
CM and
WuM
CMWuM and
lC
Mlnlmum aldup caplLal 30 30 30 30 30
neL WorLh 100 100
(Membershlp ln
CM segmenL and
1radlng/1radlng
and self clearlng
membershlp
ln lC
segmenL)
300
(Membershlp ln
CM segmenL and
1radlng and
Clearlng
membershlp ln
lC segmenL)
200 200 200
(Membershlp ln
WuM segmenL
CM segmenL and
1radlng/1radlng
and Self Clearlng
membershlp ln
lC segmenL)
300
(Membershlp ln
WuM segmenL
CM segmenL
and
1radlng and
Clearlng
membershlp ln
lC segmenL)
lnLeresL lree SecurlLy
ueposlL wlLh nSLlL
83 110 130 233 260
lnLeresL lree SecurlLy
ueposlL wlLh nSCCL
13 13 * nlL 13 13 *
CollaLeral SecurlLy
ueposlL wlLh nSCCL
23 23** nlL 23 23**
Annual SubscrlpLlon 1 1 1 2 2
Advance Mlnlmum
1ransacLlon Charges for
luLures SegmenL
nlL 1 nlL nlL 1
LducaLlon 1wo
dlrecLors
should be
PSC
uealers
should
also have
passed
SL8l
approved
cerLlflcaLlo
n LesL for
CaplLal
MarkeL
Module of
nClM
1wo dlrecLors
should be PSC
uealers should
also have passed
SL8l approved
cerLlflcaLlon LesL
for uerlvaLlves
and CaplLal
MarkeL Module of
nClM
1wo
dlrecLors
should be
PSC
uealers
should also
have passed
llMMuAnSL uebL
MarkeL
(8aslc
Module) of
nClM
1wo
dlrecLors
should be
PSC
uealers
should
also have
passed
llMMuAnSL uebL
MarkeL
(8aslc
Module) of
nClM
CaplLal
MarkeL
Module of
nClM
1wo dlrecLors
should be PSC
uealers should
also have passed
llMMuAnSL
uebL MarkeL
(8aslc Module) of
nClM
CaplLal MarkeL
Module of
nClM
SL8l approved
cerLlflcaLlon LesL
for uerlvaLlves
Lxperlence 1wo years experlence ln securlLles markeL

1rack 8ecord 1he ulrecLors should noL be defaulLers on any sLock exchange 1hey
musL noL
be debarred by SL8l for belng assoclaLed wlLh caplLal markeL as
lnLermedlarles 1hey musL be engaged solely ln Lhe buslness of securlLles and
musL noL be engaged ln any fundbased acLlvlLy22
1able 22 LllglblllLy CrlLerla for Membershlp lndlvlduals/ arLnershlp llrms
(AmounL ln 8s lakh)
arLlculars CM CM and lC WuM
CM and
WuM
CMWuM and
lC
neL WorLh
73
73 (Membershlp ln CM
segmenL and 1radlng
membershlp ln lC
segmenL)
100 (Membershlp ln CM
segmenL and 1radlng and
Self clearlng membershlp
ln Lhe lC segmenL)
300 (Membershlp ln CM
segmenL and 1radlng and
Clearlng membershlp ln
lC segmenL)
200 200
200
(Membershlp ln
WuM segmenL
CM segmenL and
1radlng/1radlng
and Self Clearlng
membershlp ln
lC segmenL)
300
(Membershlp ln
WuM
segmenLCM
segmenL and
1radlng and
clearlng
membershlp on
lC segmenL)
lnLeresL lree
SecurlLy ueposlL
(llSu) wlLh nSLlL
263 313 130 1763 2013
lnLeresL lree
SecurlLy ueposlL
(llSu) wlLh nSCCL
6 6 * nlL 6 6*
CollaLeral SecurlLy
ueposlL (CSu) wlLh
nSCCL
173 173 ** nlL 173 173 **
Annual SubscrlpLlon 03 03 1 13 13
Advance Mlnlmum
1ransacLlon Charges
for luLures SegmenL
nlL 1 nlL nlL 1
1rack 8ecord
1he arLners/roprleLor should noL be defaulLers on any sLock exchange 1hey
musL noL be debarred by SL8l for belng assoclaLed wlLh caplLal markeL as
lnLermedlarles 1hey musL be engaged solely ln Lhe buslness of securlLles and
musL
noL be engaged ln any fundbased acLlvlLy
*AddlLlonal llSu of 23 lakhs wlLh nSCCL ls requlred for 1radlng and Clearlng
Members (1MCM) and for
1radlng and Self clearlng members (1M/SCM)
** AddlLlonal CollaLeral SecurlLy ueposlL (CSu) of 23 lakh wlLh nSCCL ls requlred
for 1radlng and
Clearlng members(1MCM) and for 1radlng and Self clearlng member (1M/SCM)
ln addlLlon Lo cerLaln ellglblllLy crlLerlon Lhere are cerLaln professlonal
requlremenLs
for clearlng me mbershlp as descrlbed ln 1able 23 below
1able 23 8equlremenLs for rofesslonal Clearlng Membershlp
(AmounL ln 8s lakh)
arLlculars CM SegmenL lC SegmenL
LllglblllLy 1radlng Member of nSL/SL8l 8eglsLered CusLodlans/8ecognlsed 8anks
neL WorLh 300 300
lnLeresL lree SecurlLy
ueposlL (llSu) * 23 23
CollaLeral SecurlLy ueposlL
(CSu) 23 23
Annual SubscrlpLlon 23 nll23
*1he rofesslonal Clearlng Member (CM) ls requlred Lo brlng ln llSu of 8s 2 lakh
and CSu of 8s 8 lakh
per Lradlng member whose Lrades he underLakes Lo clear ln Lhe lC segmenL and
llSu of 8s 6 lakh and
CSu of 8s 173 lakh (8s 9 lakh and 8s 23 lakh respecLlvely for corporaLe
Members) per Lradlng member
ln Lhe CM segmenL
1he followlng 1able 24 provldes Lhe ellglblllLy crlLerlon for Lradlng membershlp
and
clearlng membershlp for currency derlvaLlves
1able 24 Currency uerlvaLlves CorporaLes lndlvlduals and llrms
(AmounL ln 8s Lakh)
arLlculars nSL Members nCuLx Members new AppllcanLs
1radlng
Member
shlp
1radlng
cum
Clearlng
Member
shlp
1radlng
Member
shlp
1radlng cum
Clearlng
Membershlp
1radlng
Member
shlp
1radlng cum
Clearlng
Membershlp
rofesslonal
Clearlng
Membershlp
neLworLh 100 1000 100 1000 100 1000 1000
lnLeresL lree
SecurlLy
ueposlL wlLh
nSLlL
2 2 2 2 2 2
CollaLeral
SecurlLy
ueposlL wlLh
nSLlL
8 8 103 13 13 18
lnLeresL lree
SecurlLy
ueposlL wlLh
nSCCL
23 23 23 23
CollaLeral
SecurlLy
ueposlL wlLh
nSCCL
23 23 23 23
LducaLlon 1wo dlrecLors should be PSC uealers should also have passed SL8l
approved naLlonal
lnsLlLuLe of SecurlLles MarkeLs (nlSM) Serles l Currency uerlvaLlves CerLlflcaLlon
LxamlnaLlon
Lxperlence 1wo years experlence ln securlLles markeL

1rack 8ecord 1he ulrecLors/arLners/roprleLor should noL be defaulLers on any
sLock exchange 1hey
musL noL be debarred by SL8l for belng assoclaLed wlLh caplLal markeL as
lnLermedlarles
1hey musL be engaged solely ln Lhe buslness of securlLles and musL noL be
engaged ln any
fundbased acLlvlLy
ln addlLlon Lo Lhe lndlvlduals corporaLes and parLnershlp flrms 8anks auLhorlzed
by Lhe 8eserve 8ank of lndla under secLlon 10 of Lhe lorelgn Lxchange
ManagemenL AcL 1999 as 'Au CaLegory l bank' are permlLLed Lo become
Lradlng and clearlng members of Lhe currency derlvaLlves markeL of Lhe
recognlzed sLock exchanges on Lhelr own accounL and on behalf of Lhelr cllenLs
sub[ecL Lo mlnlmum prudenLlal requlremenLs of mlnlmum neL worLh of 8s 300
crores mlnlmum C8A8 of 10 per cenL neL nA noL exceedlng 3 per cenL and neL
proflL should have been made for lasL 3 years
1he Au CaLegory l banks whlch fulflll Lhe prudenLlal requlremenLs are requlred
L o lay down deLalled guldellnes wlLh Lhe approval of Lhelr 8oards for Lradlng and
clearlng of currency derlvaLlves conLracLs and managemenL of rlsks Au CaLegory
l banks whlch do noL meeL Lhe above mlnlmum prudenLlal requlremenLs and Au
CaLegory l banks whlch are urban CooperaLlve banks or SLaLe CooperaLlve 24
banks can parLlclpaLe ln Lhe currency derlvaLlves markeL only as cllenLs sub[ecL
Lo approval Lherefore from Lhe respecLlve regulaLory ueparLmenLs of Lhe 8eserve
8ank
223 Admlsslon rocedure for new Membershlp
llgure 21 Admlsslon procedure for new membershlp aL nSL
Admlsslon ls a LwosLage process wlLh appllcanLs requlrlng Lo go Lhrough an
examlnaLlon (a module of nClM) followed by an lnLervlew wlLh Lhe Membershlp
8ecommendaLlon CommlLLee AL any polnL of Llme Lhe appllcanL has Lo ensure
LhaL aL
leasL Lhe sole proprleLor/one of Lhe deslgnaLed parLner/one of Lhe deslgnaLed
dlrecLor/compllance offlcer has a valld cerLlflcaLe of SecurlLles MarkeL (8aslc)
Module
or Compllance Cfflcers (8rokers) Module or Lhe relevanL module perLalnlng Lo Lhe
segmenLs whereln membershlp of Lhe Lxchange has been soughLle
(a) CaplLal MarkeL (uealers) Module
(b) uerlvaLlves MarkeL (uealers) Module
( c ) naLlonal lnsLlLuLe of SecurlLles MarkeLs (nlSM) Serles l Currency
uerlvaLlves CerLlflcaLlon LxamlnaLlon
1he admlsslon procedure for new membershlp deplcLed ln flgure 21 ls explalned
below
AppllcanLs are requlred Lo submlL appllcaLlon form ln Lhe prescrlbed formaL along
wlLh oLher relevanL documenLs Lo Lhe Lxchange
1he appllcaLlon for new membershlp ls Lhen forwarded Lo Membershlp
8ecommendaLlon CommlLLee 1he Membershlp 8ecommendaLlon CommlLLee
(M8C)
conslsLs of seven persons from varlous dlsclpllnes 1he M8C conducLs lnLervlews
of
Lhe appllcanLs for Lradlng membershlp ln case of corporaLes Lhe domlnanL
shareholder and deslgnaLed dlrecLors ln case of lndlvlduals Lhe lndlvldual hlmself
and ln case of parLnershlp flrms Lwo deslgnaLed parLners have Lo appear for
Lhe 23
lnLervlew 1he purpose of Lhe lnLervlew ls Lo acqulre lnformaLlon abouL Lhelr
capablllLy commlLmenL Lo carry on sLock broklng acLlvlLles flnanclal sLandlng
and
lnLegrlLy
1he M8C recommends Lhe names for admlsslon of Lradlng members Lo Lhe
Membershlp Approval CommlLLee (SubcommlLLee of board of dlrecLors)/8oard of
dlrecLors of Lhe Lxchange
1he 8oard of ulrecLors afLer Laklng lnLo conslderaLlon Lhe recommendaLlons of
Lhe
M8C elLher approves or re[ecLs Lhe appllcaLlons
Cn geLLlng approval from Lhe 8oard an admlsslon on a provlslonal basls ls
provlded
Lo Lhe appllcanL sub[ecL Lo cerLaln condlLlons llke reglsLraLlon wlLh SL8l
submlsslon
of relevanL fees/deposlLs and documenLs 1he documenLs of Lhe member are
Lhen
forwarded Lo SL8l for reglsLraLlon
AfLer saLlsfylng lLself as Lo compllance wlLh respecL Lo all Lhe prescrlbed norms
SL8l
granLs a 8eglsLraLlon CerLlflcaLe ln Lhe name of Lhe appllcanL
1he appllcanL Lhen has Lo remlL Lhe prescrlbed membershlp deposlLs (as requlred
by
Lhe demand advlce aLLached Lo Lhe provlslonal offer leLLer) wlLhln Lhe Llme frame
prescrlbed ln Lhe demand advlce aLLached Lo Lhe provlslonal offer leLLer
AfLer obLalnlng SL8l 8eglsLraLlon Lhe Lradlng member has Lo saLlsfy Lhe
Lxchange
and nSCCL regardlng all Lhe formallLles and requlremenLs such as paymenL of
fees/deposlLs and submlsslon of relevanL documenLs for enablemenL 1he dealers
on
CM segmenL are requlred Lo clear Lhe CaplLal MarkeL (uealers) Module of nClM
dealers on luLures CpLlons SegmenL are requlred Lo clear Lhe uerlvaLlves
MarkeL
(uealers) Module or equlvalenL examlnaLlon of nClM and dealers on Currency
uerlvaLlves segmenL are requlred Lo clear naLlonal lnsLlLuLe of SecurlLles MarkeL
(nlSM) Serles l Currency uerlvaLlves CerLlflcaLlon LxamlnaLlon 1hls ls a
prerequlslLe wlLhouL whlch userlds are noL lssued
AfLer ensurlng LhaL all Lhe formallLles and requlremenLs wlLh regard Lo Lhe
Lxchange
and nSCCL are complled Lhe 1radlng Member ls enabled Lo Lrade on Lhe nLA1
sysLem
23 Surrender of 1radlng membershlp
1radlng members can apply for surrender of Lhelr Lradlng membershlp once
admlLLed
L o Lhe Lxchange Surrender of Lradlng membershlp can be permlLLed by Lhe
Lxchange afLer fulfllllng cerLaln condlLlons by Lhe member such as clearlng off all
Lhe
dues Lo Lhe Lxchange and nSCCL noLlfylng all oLher 1Ms of Lhe approval of
surrender obLalnlng 'no dues' cerLlflcaLe from SL8l lssuance of a publlc
noLlflcaLlon
ln leadlng dallles eLc 1he deposlLs of Lhe Lradlng members would be released by
Lhe
Lxchange/nSCCL afLer a prescrlbed lockln perlod 1here ls however no lockln
perlod appllcable ln case of Lradlng member who ls
(a) noL SL8l reglsLered
(b) SL8l reglsLered buL noL enabled
(c) SL8l reglsLered and enabled buL noL Lraded aL all26
nSL provldes a scheme for enabllng Lhe Lradlng member Lo surrender Lhelr
membershlp L o Lhe Lxchange ueLalls of Lhe norms and procedures relaLed Lo
Lhe
surrender of membershlp L o Lhe Lxchange are prescrlbed as below
(a) A Lradlng member deslrous of surrenderlng lLs membershlp of Lhe
Lxchange ls requlred Lo send lLs requesL ln wrlLlng ln Lhe prescrlbed
formaL
(b) 8efore submlsslon of an appllcaLlon for surrender of membershlp Lhe
Lradlng member ls requlred Lo comply wlLh all Lhe prerequlslLes for
appllcaLlon of surrender ln Lhe prescrlbed formaL 1he followlng aspecLs
should be covered ln Lhe appllcaLlon for surrender of membershlp from
a Lradlng member
(l) who has been suspended/ dlsclpllnary acLlon Laken by Lhe
Lxchange /SL8l
(ll) ln respecL of whom any lnvesLlgaLlon/ acLlon consequenL Lo a
defaulL has been lnlLlaLed by Lhe Lxchange /SL8l
(lll) who ls falllng wlLhln Lhe caLegory of 'assoclaLes' as deflned by
SL8l
(lv) who owes dues Lo Lhe Lxchange/ nSCCL
(v) agalnsL whom clalms by lnvesLors of value of 8s10 lakh or
more are pendlng or any clalm for any amounL ls pendlng for
a perlod more Lhan 6 monLhs
(vl) agalnsL whom any oLher clalm /complalnL ls pendlng whlch ln
Lhe oplnlon of Lhe Lxchange/ nSCCL needs Lo be resolved by
Lhe concerned Lradlng member
(vll) whose Lurnover fees llablllLy Lo SL8l ls sLlll ouLsLandlng
1he Lxchange has absoluLe dlscreLlon ln deallng wlLh such appllcaLlons
and lf lL decldes Lo process/accepL Lhe surrender appllcaLlon of such
Lradlng member lL may lmpose addlLlonal Lerms and condlLlons as lL
may deem flL
(c) no Lradlng member who has surrendered lLs Lradlng membershlp Lhelr
parLners (ln case of parLnershlp flrm) and/ or domlnanL shareholders
(ln case of corporaLes) ls ellglble Lo be readmlLLed Lo Lhe Lradlng
membershlp of Lhe Lxchange ln any form for a perlod of one year from
Lhe daLe of cessaLlon of Lradlng membershlp (le from Lhe daLe of
approval of surrender)
(d) 1he appllcaLlon of surrender of Lradlng membershlp ls sub[ecL Lo
fulflllmenL of cerLaln condlLlons such as submlsslon of orlglnal SL8l
reglsLraLlon cerLlflcaLe(s) on all segmenLs on whlch Lhe Lradlng
member ls reglsLered submlsslon of subbroker reglsLraLlon
cerLlflcaLe(s) of all Lhe subbrokers assoclaLed wlLh Lhe Lradlng
member for onward Lransmlsslon Lo Lhe SL8l for cancellaLlon eLc
(e) 1he Lradlng member should requesL Lhe Lxchange Lhrough Lhelr
surrender appllcaLlon Lo dlsmanLle and recover all Lhe leased llne(s)/
vSA1(s) and oLher equlpmenLs glven Lo Lhem aL Lhelr deallng offlces
(f) A noLlce Lo publlc by way of a publlc noLlflcaLlon ln newspapers should
be made by Lhe Lxchange and cerLaln Llme (from Lhe daLe of publlc 27
noLlflcaLlon) ls glven Lo lnvesLors publlc eLc Lo lodge clalms agalnsL
Lhe surrenderlng Lradlng member
(g) A leLLer ls also senL Lo SL8l seeklng pendlng dues lf any from
member
(h) Cn Lhe explry of perlod for recelpL of lnvesLor clalms and on recelpL of
lnLlmaLlon of dues amounL lf any from SL8l Lhe LoLal amounL
payable by Lhe member should be approprlaLed agalnsL Lradlng
member's deposlLs avallable wlLh Lhe Lxchange / nSCCL and Lhe
Lradlng member wlll be lnLlmaLed accordlngly ln case Lhe amounL
payable exceeds Lhe deposlLs Lhe Lradlng Member would be lnLlmaLed
Lo brlng ln Lhe requlslLe amounL wlLhln 21 days of lnLlmaLlon upon Lhe
fallure of Lhe member Lo do so wlLhln 21 days of lnLlmaLlon Lhe case
shall be referred Lo Lhe relevanL auLhorlLy for furLher acLlon
24 Suspenslon Lxpulslon of Membershlp
1he Lxchange may expel or suspend flne under censure warn wlLhdraw any of
Lhe
membershlp rlghLs of a Lradlng member lf lL ls gullLy of conLravenLlon
noncompllance dlsobedlence dlsregard or evaslon of any of Lhe byelaws rules
and
regulaLlons of Lhe Lxchange or of any resoluLlons orders noLlces dlrecLlons or
declslons or rullngs of Lhe Lxchange or Lhe relevanL auLhorlLy
241 8asls of Suspenslon of Membershlp
lollowlng are some grounds on basls of whlch Lhere can be suspenslon or
expulslon
of membershlp
(l) MlsconducL A Lradlng member ls deemed gullLy of mlsconducL for any of Lhe
followlng or slmllar acLs or omlsslons namely
(a) lraud or fraudulenL acL or lf he ls convlcLed of a crlmlnal offence
(b) vlolaLlon of Lhe provlslons of any sLaLuLe governlng Lhe acLlvlLles
buslness and operaLlons of Lhe Lxchange
( c ) lmproper conducL
(d) lallure Lo submlL Lo or ablde by arblLraLlon
(e) lallure Lo LesLlfy or glve lnformaLlon soughL by Lhe Lxchange or any
commlLLee or any oLher person auLhorlzed o n LhaL behalf
(f) lallure Lo submlL speclal reLurns ln such form as Lhe relevanL auLhorlLy
may from Llme Lo Llme prescrlbe
(g) lallure Lo submlL audlLed accounLs
(h) lallure Lo compare or submlL accounLs wlLh defaulLer
(l) lallure Lo submlL or make any false or mlsleadlng reLurns
([) Make vexaLlous mallclous or frlvolous complalnLs
(k) lallure Lo pay subscrlpLlon fee arblLraLlon charges eLc
(ll) unbuslnessllke conducL A Lradlng member ls deemed gullLy of
unbuslnessllke conducL for any of Lhe followlng or slmllar acLs or omlsslons
namely
(a) 1ransacLlon or buslness deallngs ln flcLlLlous names
(b) ClrculaLlon of rumours
( c ) Any unfalr deallng ln securlLles whlch does noL reflecL Lhe Lrue markeL
values
(d) MarkeL manlpulaLlon and rlgglng28
(e) unwarranLable buslness whlch effecLs purchases or sales for lLs
accounL or any accounL relaLed Lo Lhe Lradlng member
(f) lf a Lradlng member accepLs less Lhan a full and bonaflde money
paymenL ln seLLlemenL of a debL due by anoLher Lradlng member
arlslng ouL of a LransacLlon ln securlLles
(g) ulshonoured cheque
(h) lallure Lo carry ouL LransacLlons wlLh consLlLuenLs
(lll) unprofesslonal conducL A Lradlng member ls deemed gullLy of unprofesslonal
conducL for any of Lhe followlng or slmllar acLs or omlsslons namely
(a) 8uslness ln securlLles ln whlch deallngs noL permlLLed
(b) 8uslness for defaulLlng consLlLuenL who falled Lo carry ouL
engagemenLs relaLlng Lo securlLles and ls ln defaulL Lo anoLher Lradlng
member
( c ) 1ransacLs ln buslness wlLh an lnsolvenL wlLhouL obLalnlng Lhe consenL
of Lhe relevanL auLhorlLy even lf Lhe lndlvldual has obLalned hls flnal
dlscharge from an lnsolvency courL
(d) Carrylng ouL hls buslness durlng hls suspenslon perlod
(e) 8uslness wlLh suspended expelled and defaulLer Lradlng members
(f) 8uslness for employees of oLher Lradlng members
(g) 8uslness for Lxchange employees lf lL makes a speculaLlve LransacLlon
ln whlch an employee of Lhe Lxchange ls dlrecLly or lndlrecLly
lnLeresLed
(h) lf lL adverLlses for buslness purposes or lssue regularly clrcular or
oLher buslness communlcaLlons Lo persons oLher Lhan lLs own
consLlLuenLs Lradlng members of Lhe Lxchange banks and [olnL sLock
companles or publlshes pamphleLs clrcular or any oLher llLeraLure or
reporL or lnformaLlon relaLlng Lo Lhe sLock markeLs wlLh lLs name
aLLached
(l) Lvaslon of margln requlremenLs
([) Lvaslon of brokerage charges
(k) ueallngs wlLh enLlLles prohlblLed by SL8l Lo buy or sell or deal ln
securlLles markeL
(lv) 1radlng member's responslblllLy for parLners agenLs and employees A
Lradlng member ls fully responslble for Lhe acLs and omlsslons of lLs parLners
auLhorlsed offlclals aLLorneys agenLs auLhorlsed represenLaLlves and employees
lf
any such acL whlch ls agalnsL Lhe relevanL rules and regulaLlons ls commlLLed or
omlLLed by Lhem Lhen Lhe Lradlng member ls llable Lo Lhe same penalLy Lo Lhe
same
exLenL has LhaL acL or omlsslon been done or omlLLed by lLself
(v) Suspenslon on fallure Lo provlde margln deposlL and/or caplLal adequacy
requlremenLs 1he Lxchange can suspend Lhe buslness of a Lradlng member when
lL falls Lo provlde Lhe margln deposlL and/or meeLs caplLal adequacy norms as
provlded ln Lhe 8ye Laws 8ules and 8egulaLlons 1he Lradlng member shall
remaln
suspended unLll he furnlshes Lhe necessary margln deposlL or meeL Lhe caplLal
adequacy requlremenLs
242 Suspenslon of 8uslness
1he relevanL auLhorlLy may requlre a Lradlng member Lo suspend lLs buslness ln
parL
or ln whole under followlng condlLlons29
(a) re[udlclal buslness When Lhe relevanL auLhorlLy flnds LhaL Lhe Lradlng
member conducLs buslness ln a manner pre[udlclal Lo Lhe Lxchange by
maklng purchases or sales of securlLles or offers Lo purchase or sell
securlLles for Lhe purpose of upseLLlng equlllbrlum of Lhe markeL or
brlnglng abouL a condlLlon of demorallsaLlon ln whlch prlces wlll noL
falrly reflecL markeL values or
(b) unwarranLable bu s lness When ln Lhe oplnlon of Lhe relevanL auLhorlLy
Lhe Lradlng member engages ln unwarranLable buslness or effecLs
purchases or sales for lLs consLlLuenLs accounL or for any accounL ln
whlch lL ls dlrecLly or lndlrecLly lnLeresLed whlch purchases or sales are
excesslve ln vlew of lLs consLlLuenLs or lLs own means and flnanclal
resources or ln vlew of Lhe markeL for such securlLy or
( c ) unsaLlsfacLory flnanclal condlLlon When Lhe relevanL auLhorlLy flnds
LhaL Lhe Lradlng member ls ln a bad flnanclal condlLlon and lL cannoL be
permlLLed Lo do buslness wlLh safeLy Lo lLs credlLors or Lhe Lxchange
243 8emoval of Suspenslon
1he suspenslon of buslness as above shall conLlnue unLll Lhe Lradlng member has
been allowed by Lhe relevanL auLhorlLy Lo resume buslness lL may be done on lLs
paylng such deposlL or on lLs dolng such acL or provldlng such Lhlng as Lhe
relevanL
auLhorlLy may requlre
244 Consequences of Suspenslon
1he suspenslon of a Lradlng member has Lhe followlng consequences
(a) Suspenslon of membershlp rlghLs 1he suspended Lradlng member
shall durlng Lhe Lerms of lLs suspenslon be deprlved of and excluded
from all Lhe rlghLs and prlvlleges of membershlp lL shall also lnclude
Lhe rlghL Lo aLLend or voLe aL any meeLlng of Lhe general body of
Lradlng members of Lhe relevanL segmenL
(b) 8lghLs of credlLors unlmpalred 1he suspenslon should noL affecL Lhe
rlghLs of Lhe Lradlng members who are credlLors of Lhe suspended
Lradlng member
( c ) lulflllmenL of conLracLs 1he suspended Lradlng members are bound Lo
fulflll conLracLs ouLsLandlng aL Lhe Llme of lLs suspenslon
(d) lurLher buslness prohlblLed 1he suspended Lradlng member should
noL durlng Lhe Lerms of lLs suspenslon make any Lrade or LransacL any
buslness wlLh or Lhrough a Lradlng member WlLh Lhe permlsslon of Lhe
relevanL auLhorlLy however lL can close Lhe LransacLlons ouLsLandlng
aL Lhe Llme of lLs suspenslon
(e) 1radlng members noL Lo deal wlLh suspended Lradlng member no
Lradlng member ls allowed Lo LransacL ln buslness wlLh a suspended
Lradlng member durlng Lhe Lerms of lLs suspenslon excepL wlLh Lhe
prlor permlsslon of Lhe relevanL auLhorlLy
243 Consequences of Lxpulslon
1he expulslon of a Lradlng member has Lhe followlng consequences30
(a) 1radlng membershlp rlghLs forfelLed 1he expelled Lradlng member
shall forfelL Lo Lhe Lxchange lLs rlghL of Lradlng membershlp and all
rlghLs and prlvlleges as a Lradlng member of Lhe Lxchange lncludlng
any rlghL Lo Lhe use of or any clalm upon or any lnLeresL ln any
properLy or funds of Lhe Lxchange buL any llablllLy of any such Lradlng
member Lo Lhe Lxchange or Lo any Lradlng member of Lhe Lxchange
shall conLlnue and remaln unaffecLed by lLs expulslon
(b) Cfflce vacaLed 1he expulslon would creaLe a vacancy ln any offlce or
poslLlon held by Lhe expelled Lradlng member
( c ) 8lghLs of credlLors unlmpalred 1he expulslon does noL affecL Lhe
rlghLs of Lhe Lradlng members who are credlLors of Lhe expelled
Lradlng member
(d) lulflllmenL of conLracLs 1he expelled Lradlng members are bound Lo
fulflll LransacLlons ouLsLandlng aL Lhe Llme of hls expulslon and lL may
wlLh Lhe permlsslon of Lhe relevanL auLhorlLy close such ouLsLandlng
LransacLlons wlLh or Lhrough a Lradlng member
(e) 1radlng members noL Lo deal wlLh expelled Lradlng member no
Lradlng member ls allowed Lo LransacL buslness for or wlLh or share
brokerage wlLh Lhe expelled Lradlng member excepL wlLh Lhe prevlous
permlsslon of Lhe relevanL auLhorlLy
(f) Consequences of declaraLlon of defaulLer Lo follow 1he provlslons of
perLalnlng Lo defaulL and roLecLlon lund menLloned ln Lhe byelaws
become appllcable Lo Lhe Lradlng member expelled from Lhe Lxchange
as lf such Lradlng member has been declared a defaulLer
23 ueclaraLlon of uefaulLer
A Lradlng member may be declared a defaulLer by dlrecLlon /clrcular/noLlflcaLlon
of
Lhe relevanL auLhorlLy of Lhe Lradlng segmenL lf
(a) he ls unable Lo fulflll hls obllgaLlons or
(b) he admlLs or dlscloses hls lnablllLy Lo fulflll or dlscharge hls duLles
obllgaLlons and llablllLles or
( c ) he falls or ls unable Lo pay wlLhln Lhe speclfled Llme Lhe damages and
Lhe money dlfference due on a closlngouL effecLed agalnsL hlm under
Lhe bye laws rules and regulaLlons or
(d) he falls Lo pay any sum due Lo Lhe Lxchange or Lo submlL or dellver Lo
Lhe Lxchange on Lhe due daLe dellvery and recelve orders sLaLemenL
of dlfferences and securlLles balance sheeL and such oLher clearlng
forms and oLher sLaLemenLs as Lhe relevanL auLhorlLy may from Llme
Lo Llme prescrlbe or
(e) lf he falls Lo pay or dellver Lo L h e defaulLers commlLLee all monles
securlLles and oLher asseLs due Lo a Lradlng member who has been
declared a defaulLer wlLhln such Llme of Lhe declaraLlon of defaulL of
such Lradlng member as Lhe relevanL auLhorlLy may dlrecL or
(f) lf he falls Lo ablde by Lhe arblLraLlon proceedlngs as lald down under
Lhe bye laws rules and regulaLlons
WlLhouL pre[udlce Lo Lhe foregolng lf a Lradlng member ls elLher expelled or
declared
a defaulLer by any oLher recognlsed sLock exchange on whlch he ls a member or lf
Lhe reglsLraLlon cerLlflcaLe ls cancelled by SL8l Lhen Lhe sald Lradlng member ls
expelled from Lhe Lxchange31
26 AuLhorlsed ersons
1radlng members of Lhe Lxchange can appolnL auLhorlsed persons ln Lhe CaplLal
MarkeL luLures CpLlons and Currency uerlvaLlves SegmenLs AuLhorlsed
erson ls
Any personlndlvldual parLnershlp flrm LlmlLed LlablllLy arLnershlp (LL) or
body
corporaLe who ls appolnLed as such by a sLock broker (lncludlng Lradlng member)
and who provldes access Lo Lradlng plaLform of a sLock exchange as an agenL of
Lhe
sLock broker AuLhorlsed erson can recelve remuneraLlon fees charges
commlsslon salary eLc for hls servlces only from Lhe sLock broker and shall noL
charge any amounL from Lhe cllenLs Accordlngly sLock broker can share
brokerage
wlLh Lhe AuLhorlsed erson buL shall noL charge any amounL dlrecLly from Lhe
cllenLs
1he cllenLs lnLroduced by Lhe auLhorlsed person should have a dlrecL relaLlonshlp
wlLh Lhe Lradlng member le Lhe memberconsLlLuenL agreemenL know your
cllenL
forms rlsk dlsclosure documenL eLc are execuLed beLween Lhe cllenL and Lhe
Lradlng member 1hls lmplles LhaL Lhe auLhorlsed person ls noL allowed Lo have
any
Lradlng relaLlonshlp wlLh Lhe cllenLs 1he Lradlng member should lssue Lhe
conLracL
noLes and bllls dlrecLly Lo Lhe cllenL le Lhe auLhorlzed person should noL lssue
conLracL noLes conflrmaLlon memo and/or bllls ln Lhelr name
1he cllenLs lnLroduced by Lhe auLhorlsed person are requlred Lo dellver securlLles
and
make paymenLs dlrecLly ln Lhe Lrade name of Lhe Lradlng member (as appearlng
on
Lhe SL8l reglsLraLlon cerLlflcaLe) Slmllarly Lhe Lradlng member should dellver
securlLles and make paymenLs dlrecLly ln Lhe name of Lhe cllenLs
27 Sub8rokers
Sub broker ls an lmporLanL lnLermedlary beLween sLock bro ker and cllenL ln
caplLal
markeL segmenL 1he Lradlng members of Lhe Lxchange may appolnL subbrokers
Lo
acL as agenLs of Lhe concerned Lradlng member for asslsLlng Lhe lnvesLors ln
buylng
selllng or deallng ln securlLles 1he subbrokers are afflllaLed Lo Lhe Lradlng
members
and are requlred Lo be reglsLered wlLh SL8l A subbroker ls allowed Lo be
assoclaLed
wlLh only one Lradlng member of Lhe Lxchange
1radlng members deslrous of appolnLlng subbrokers are requlred Lo submlL Lhe
followlng documenLs Lo Lhe Membershlp ueparLmenL of Lhe Lxchange
(a) Copy of subbroker broker agreemenL duly cerLlfled by Lhe Lradlng
members
(b) AppllcaLlon form for reglsLraLlon as a subbroker wlLh SecurlLles and
Lxchange 8oard of lndla (lorm 8)
(c) 8ecommendaLlon leLLer Lo be glven by Lhe Lradlng member wlLh whom
Lhe subbroker ls afflllaLed (lorm C)
1he Lradlng member has Lo ensure Lhe seLLlemenL of all deals enLered lnLo by a
Lradlng member even lf Lhe deals may have orlglnaLed from lLs subbroker
1he subbroker wlll be requlred Lo adhere Lo nSL's 'know your cllenLs'
requlremenLs
1he lmporLanL documenLs relaLlng Lo deallng Lhrough a subbroker are glven
below
(a) lndlvldual cllenL reglsLraLlon appllcaLlon form
(b) nonlndlvldual cllenL reglsLraLlon appllcaLlon form
( c ) Subbroker cllenL agreemenL32
271 LllglblllLy
A subbroker may be an lndlvldual a parLnershlp flrm or a corporaLe ln case of
corporaLe or parLnershlp flrm Lhe dlrecLors or parLners and ln Lhe case of an
lndlvldual subbroker appllcanL should comply wlLh Lhe followlng requlremenLs
(a) 1hey should noL be less Lhan 21 years of age
(b) 1hey should noL have been convlcLed of any offence lnvolvlng fraud or
dlshonesLy
(c) 1hey should have elLher passed 12
Lh
sLandard equlvalenL
examlnaLlon from an lnsLlLuLlon recognlzed by Lhe CovernmenL or
10Lh sLandard wlLh 2 years of work experlence ln securlLles markeL
(d) 1hey should noL have been debarred by SL8l
272 8eglsLraLlon
no subbroker ls allowed Lo buy sell or deal ln securlLles unless he or she holds a
cerLlflcaLe of reglsLraLlon granLed by SL8l Subbrokers are requlred Lo obLaln
cerLlflcaLe of reglsLraLlon from SL8l ln accordance wlLh SL8l (SLock 8rokers
Subbrokers) 8ules and 8egulaLlons 1992 wlLhouL whlch Lhey are noL permlLLed
Lo buy
sell or deal ln securlLles SL8l may granL a cerLlflcaLe Lo a subbroker sub[ecL Lo
Lhe
condlLlons LhaL
(a) he should pay Lhe fees ln Lhe prescrlbed manner
(b) he should Lake adequaLe sLeps for redress of grlevances of Lhe
lnvesLors wlLhln one monLh of Lhe daLe of Lhe recelpL of Lhe complalnL
and keep SL8l lnformed abouL Lhe number naLure and oLher
parLlculars of Lhe complalnLs recelved
(c) ln case of any change ln Lhe sLaLus and consLlLuLlon Lhe subbroker
should obLaln prlor permlsslon of SL8l Lo conLlnue Lo buy sell or deal
ln securlLles ln any sLock exchange and
(d) he should be auLhorlsed ln wrlLlng by a sLockbroker belng a member
of a sLock exchange for afflllaLlng hlmself ln buylng selllng or deallng
ln securlLles
1he appllcanL subbroker should submlL Lhe requlred documenLs Lo Lhe sLock
exchange wlLh Lhe recommendaLlon of a Lradlng member AfLer verlfylng Lhe
documenLs Lhe sLock exchange may forward Lhe documenLs of Lhe appllcanL
subbroker Lo SL8l for reglsLraLlon A subbroker can Lrade ln LhaL capaclLy afLer
geLLlng
hlmself reglsLered wlLh SL8l 1he Lxchange may noL forward Lhe appllcaLlon of Lhe
subbroker Lo SL8l for reglsLraLlon lf Lhe appllcanL dealL wlLh fake forged sLolen
counLerfelL eLc shares and securlLles ln Lhe markeL
273 CancellaLlon of 8eglsLraLlon
ln case a Lradlng member / subbroker lnLends Lo cancel Lhe reglsLraLlon as a
subbroker Lhe subbroker ls requlred Lo submlL Lhe orlglnal SL8l 8eglsLraLlon
cerLlflcaLe
Lhrough Lhelr afflllaLed Lradlng member Whlle applylng for cancellaLlon of
reglsLraLlon Lhe afflllaLed Lradlng member needs Lo glve a publlc noLlflcaLlon Lo
Lhls
effecL33
28 8rokerCllenLs 8elaLlons
281 CllenL 8eglsLraLlon uocumenLs
1 h e Lradlng member (1M) ls requlred Lo enLer lnLo an agreemenL ln Lhe
speclfled
formaL provlded by nSL wlLh Lhe cllenL before accepLlng orders on laLLer's behalf
1he
agreemenL ls execuLed on non[udlclal sLamp paper of adequaLe value duly
slgned
by boLh Lhe parLles on all Lhe pages Copy of Lhe agreemenL has Lo be kepL wlLh
Lhe
1M permanenLly 1he agreemenL should conLaln all Lhe clauses menLloned ln
unlform
uocumenLary 8equlremenL (uu8) SLock broker may lncorporaLe any addlLlonal
clauses ln Lhese documenLs provlded Lhese are noL ln confllcL wlLh any of Lhe
clauses
ln Lhe model documenL and also Lhe rules regulaLlons arLlcles byelaws
clrculars
dlrecLlves and guldellnes 1here should be segregaLlon of mandaLory and
volunLary
documenLs/clauses perLalnlng Lo cllenL reglsLraLlon ln separaLe dockeL
(compllaLlon of
documenLs) ln case of lnLerneL Lradlng ln addlLlon Lo clauses menLloned ln uu8
Lhe cllenL has Lo menLlon clauses perLalnlng Lo lnLerneL Lradlng
under know ?our CllenL (k?C)" requlremenLs Lhe 1M should seek lnformaLlon
such
as lnvesLor rlsk proflle flnanclal proflle lnvesLor ldenLlflcaLlon deLalls address
deLalls lncome An number employmenL age lnvesLmenLs experlence Lradlng
preference 1he 1M has Lo obLaln recenL passporL slze phoLograph (phoLographs
of
parLners/whole Llme dlrecLors lndlvldual promoLers holdlng 3 or more elLher
dlrecLly or lndlrecLly ln Lhe shareholdlng of Lhe company and of persons
auLhorlzed
Lo deal ln securlLles and of each of Lhelr cllenLs ln case of lndlvldual cllenLs)
1he 1M should also Lake proof of ldenLlflcaLlon and address of Lhe cllenL ln
person
verlflcaLlon should be done by Lhe Lradlng member's sLaff name slgnaLure of
Lhe
person dolng Lhe lnperson verlflcaLlon LogeLher wlLh Lhe sLamp of Lradlng
member
should be Lhere on Lhe k?C form
under Member ConsLlLuenL AgreemenL (MCA) Lradlng members are requlred Lo
make Lhe consLlLuenL/cllenLs aware of (a) Lradlng segmenL Lo whlch 1 M ls
admlLLed
(b) parLlculars of SL8l reglsLraLlon number (c) Lhe preclse naLure of Lhe Lradlng
member's llablllLy for buslness Lo be conducLed (d) baslc rlsks lnvolved ln Lradlng
on
Lhe Lxchange (equlLy and oLher lnsLrumenLs) lncludlng any llmlLaLlons on Lhe
llablllLy
and Lhe capaclLy ln whlch Lhe Lradlng member acLs
ln order Lo assess Lhe rlsk lnvolved ln Lradlng 1M ls requlred Lo lssue 8lsk
ulsclosure
uocumenL (8uu)
4
ln such formaL as may be prescrlbed by Lhe Lxchange from Llme
Lo Llme and should obLaln Lhe same from hls consLlLuenLs duly slgned
A sLockbroker should noL deal knowlngly dlrecLly or lndlrecLly wlLh a cllenL who
defaulLs Lo anoLher sLockbroker 1here ls no llmlL on Lhe number of cllenLs for a
1M
Copy of Lhe cllenL reglsLraLlon documenLs ls requlred Lo be senL Lo Lhe cllenLs
1radlng member musL ensure perlodlc revlew of cllenL's flnanclal lnformaLlon
cllenL
daLabase

4
1he sald documenLs are Lo be obLalned as per Lxchange clrcular nSL/lnS/3387
dL 27Aug0434
282 unlque CllenL Code (uCC)
SL8l has made lL mandaLory for all Lradlng members/brokers Lo use unlque cllenL
codes for all cllenLs 8rokers are requlred Lo collecL and malnLaln Lhe ermanenL
AccounL number (An) alloLLed by lncome 1ax ueparLmenL for all Lhelr cllenLs

8rokers should verlfy Lhe documenLs wlLh respecL Lo Lhe unlque code and reLaln a
copy of Lhe documenL 1hey are also requlred Lo provlde Lhe An and uCC of
Lhelr
cllenLs Lo Lhe sLock exchanges/clearlng corporaLlons and Lhese deLalls have Lo be
updaLed before placlng orders for Lhe cllenLs 1he sLock exchanges are also
requlred
Lo malnLaln a daLabase of cllenL deLalls submlLLed by brokers
283 Marglns from Lhe CllenLs
Members should have a prudenL sysLem of rlsk managemenL Lo proLecL
Lhemselves
from cllenL defaulL Marglns are an lmporLanL elemenL of such a sysLem 1he
pollcy
of rlsk managemenL addresslng Lhe margln requlremenLs should be well
documenLed
and be made accesslble Lo Lhe cllenLs and Lhe sLock exchanges ln caplLa l
markeL
segmenL however Lhe quanLum of Lhese marglns Lhe form and Lhe mode of
collecLlon are lefL Lo Lhe dlscreLlon of Lhe members
3
1he margln so collecLed ls kepL
separaLely ln Lhe cllenL bank accounL/cllenL beneflclary accounL ln case of
defaulL
Lhey are uLlllzed for maklng paymenL Lo Lhe clearlng corporaLlon for margln and
seLLlemenL wlLh respecL Lo LhaL cllenL
284 LxecuLlon of Crders
Where Lhe consLlLuenL requlres an order Lo be placed or any of hls order Lo be
modlfled afLer Lhe order has enLered Lhe sysLem buL has noL been Lraded Lhe
Lradlng
member may lf lL so deslres obLaln order placemenL/modlflcaLlon deLalls ln
wrlLlng
from Lhe consLlLuenL 1he Lradlng member should accordlngly provlde Lhe
consLlLuenL
wlLh Lhe relevanL order conflrmaLlon/modlflcaLlon sllp or copy Lhereof forLhwlLh
lf so
requlred by Lhe consLlLuenL
Where Lhe consLlLuenL requlres any of hls orders Lo be cancelled afLer Lhe order
has
been enLered ln Lhe sysLem buL has noL been execuLed Lhe Lradlng member
may lf
lL so deslres obLaln Lhe order cancellaLlon deLalls ln wrlLlng from Lhe consLlLuenL
1he
Lradlng member should accordlngly provlde Lhe consLlLuenL wlLh Lhe relevanL
order
cancellaLlon deLalls forLhwlLh lf so requlred by Lhe consLlLuenL 1he Lradlng
member
may lf lL so deslres obLaln ln wrlLlng Lhe dellvery and paymenL requlremenL ln
any
lnsLrucLlons of an order LhaL lL recelves from Lhe consLlLuenL
Where a Lradlng member recelves a requesL for order modlflcaLlon or order
cancellaLlon from Lhe consLlLuenL lL should duly brlng lL Lo Lhelr noLlce LhaL lf Lhe
LoLal order resulLs ln a Lrade ln Lhe meanLlme Lhe requesLs for modlflcaLlon or
cancellaLlon cannoL be execuLed
283 ConLracL noLe
ConLracL noLe ls a conflrmaLlon of Lrade(s) done on a parLlcular day for and on
behalf
of a cllenL A sLockbroker should lssue a conLracL noLe Lo hls cllenLs for Lrades
(purchase/sale of securlLles) 1he conLracL noLe should conLaln name and address

3
SL8l/M8u/uo/SL/Clr07/2003 daLed lebruary 23 200333
(reglsLered offlce address as well as deallng offlce address) of Lhe 1M Lhe SL8l
reglsLraLlon number of Lhe 1M deLalls of Lrade vlz order number Lrade number
order Llme Lrade Llme securlLy name quanLlLy Lrade prlce brokerage
seLLlemenL
number and deLalls of oLher levles
As per 8egulaLlon 18 of SL8l (SLock8rokers Sub8rokers) 8egulaLlons 1992 Lhe
1M should preserve Lhe dupllcaLe copy of Lhe conLracL noLes lssued for a
mlnlmum of
flve years 1he 1M should ensure LhaL
(a) ConLracL noLe ls lssued Lo a cllenL wlLhln 24 hours and should be
slgned by Lhe Lradlng member or by an auLhorlzed slgnaLory Lradlng
member
(b) ConLracL noLes are ln Lhe prescrlbed formaL
6

(c) SLamp duLy ls pald
(d) All sLaLuLory levles are shown separaLely ln Lhe conLracL noLe
286 aymenLs/uellvery of SecurlLles Lo Lhe CllenLs
Lvery 1M should make paymenLs Lo hls cllenLs or dellver Lhe securlLles purchased
wlLhln one worklng day of payouL unless Lhe cllenL has requesLed oLherwlse
287 8rokerage
1he maxlmum brokerage chargeable by 1M ln respecL of Lrades effecLed ln Lhe
securlLles admlLLed Lo deallng on Lhe CM segmenL of Lhe Lxchange ls flxed aL 23
of
Lhe conLracL prlce excluslve of sLaLuLory levles 1hls maxlmum brokerage ls
lncluslve
of subbrokerage 1he brokerage should be lndlcaLed separaLely from Lhe prlce ln
Lhe conLracL noLe 1he 1M may noL share brokerage wlLh a person who ls a 1M or
ln
employmenL of anoLher 1M
lor example lf a cllenL has sold 10000 shares of a scrlp [ 8s 30 whaL ls Lhe
maxlmum brokerage LhaL Lhe cllenL can be charged?
ln Lhls case Lhe maxlmum brokerage brokerage raLe*value of Lhe LransacLlon
23 *( 10000 shares*8s 30) 8s 12300
288 SegregaLlon of 8ank AccounLs
1he 1M should malnLaln separaLe bank accounLs for cllenL's funds and own funds
lL
ls compulsory for all 1Ms Lo keep Lhe money of Lhe cllenLs ln a separaLe accounL
and
Lhelr own money ln a separaLe accounL lunds should be Lransferred from Lhe
cllenL
accounL Lo Lhe clearlng accounL for Lhe purpose of funds payln obllgaLlons on
behalf
of Lhe cllenLs and vlceversa ln case of funds payouL no paymenL for LransacLlon
ln
whlch Lhe 1M ls Laklng poslLlon as a prlnclpal ls allowed Lo be made from Lhe
cllenL's
accounL
289 SegregaLlon of uemaL (8eneflclary) AccounLs
1he Lradlng members should keep Lhe demaLerlallsed securlLles of consLlLuenLs
ln a
separaLe beneflclary accounL dlsLlncL from Lhe beneflclary accounL malnLalned for
holdlng Lhelr own demaLerlallsed securlLles no dellvery Lowards Lhe own
LransacLlons

6
As per clrcular nSL/LLCL/7036 daLed !anuary 03 2006 ln Cash MarkeL segmenL36
of Lhe Lradlng members ls allowed Lo be made from Lhe accounL meanL for
consLlLuenLs lor Lhls purpose every Lradlng member ls requlred Lo open a
beneflclary accounL ln Lhe name of Lhe Lradlng member excluslvely for Lhe
securlLles
o f L h e consLlLuenLs (Lo be referred Lo as consLlLuenLs' beneflclary accounL")
A
Lradlng member may keep one consolldaLed consLlLuenLs' beneflclary accounL for
all
lLs consLlLuenLs or dlfferenL accounLs for each of lLs c onsLlLuenLs as lL ma y deem
flL
29 Sub8rokerCllenLs 8elaLlons
291 8elaLlonshlp wlLh cllenLs
A subbroker ls requlred Lo enLer lnLo a LrlparLlLe agreemenL wlLh lLs cllenLs and
Lhe
sLock broker speclfylng Lhe scope of rlghLs and obllgaLlons of Lhe subbroker Lhe
sLock broker and such cllenL of Lhe subbroker as per Lhe formaL prescrlbed by
SL8l
for deallng ln securlLles ln cash segmenL 1here should be prlvacy of conLracL
beLween Lhe sLock broker and Lhe subbroker's cllenL A separaLe agreemenL has
Lo
be execuLed for eac h Lxchange
Subbroker ls requlred Lo help Lhe cllenL ln redress of grlevance ln respecL of
LransacLlons execuLed Lhrough lLs assoclaLed broker Subbroker ls also requlred
Lo
asslsL and c ooperaLe ln ensurlng fasLer seLLlemenL of any arblLraLlon proceedlng
arlslng ouL of Lhe LransacLlon enLered Lhrough lLs assoclaLed broker and ls
[olnLly/severally llable Lo lmplemenL Lhe arblLraLlon award
A subbroker should provlde asslsLance Lo sLock broker and cllenLs Lo reconclle
Lhelr
accounLs aL Lhe end of each quarLer wlLh reference Lo all Lhe seLLlemenLs where
payouLs have been declared durlng Lhe quarLer
292 ConLracL noLes
A sLock broker should lssue conLracL noLe as per Lhe formaL prescrlbed by Lhe
Lxchange Lo cllenL lnLroduced Lhrough a subbroker A subbroker should render
necessary asslsLance Lo lLs cllenL ln obLalnlng Lhe conLracL noLe from Lhe sLock
broker Subbroker should noL lssue any conLracL noLe or conflrmaLlon memo Lo
lLs
cllenL
293 SecurlLles/ lunds
1ransacLlons ln securlLles execuLed on behalf of a cllenL lnLroduced Lhrough Lhe
subbroker should be seLLled by dellvery/ paymenL beLween Lhe sLock broker and
Lhe
cllenL dlrecLly ln accordance of Lhe rules regulaLlons and byelaws of Lhe
Lxchange
and such seLLlemenLs should noL Lake place Lhrough subbroker uellvery of
securlLles and paymenL of funds relaLlng Lo Lhe LransacLlons of a cllenL lnLroduced
by
Lhe subbroker should be dlrecLly beLween Lhe sLock broker and Lhe cllenL of Lhe
sub
broker37
210 lnvesLor Servlce Cell and ArblLraLlon
lnvesLor complalnLs recelved agalnsL Lhe Lradlng members / companles ln respecL
of
clalms/dlspuLes for LransacLlons execuLed on Lhe Lxchange are handled by Lhe
lnvesLor Servlce Cell (lSC) 1he complalnLs are forwarded Lo Lhe Lradlng members
for resoluLlon and seeklng clarlflcaLlons 1he lSC followsup wlLh Lhe Lradlng
members and makes efforLs Lo resolve Lhe complalnL expedlLlously ln cerLaln
cases
on accounL of confllcLlng clalms made by Lhe lnvesLor and Lhe Lradlng member
when
lL ls noL posslble Lo admlnlsLraLlvely resolve Lhe complalnL lnvesLors are advlsed
Lo
Lake recourse Lo Lhe arblLraLlon mechanlsm prescrlbed by Lhe Lxchange
ArblLraLlon whlch ls a quasl [udlclal process ls an alLernaLe dlspuLe resoluLlon
mechanlsm prescrlbed under Lhe ArblLraLlon and ConclllaLlon AcL 1996 1he
Lxchange byelaws prescrlbe Lhe provlslons ln respecL of arblLraLlon and Lhe
procedure Lhereln has been prescrlbed ln Lhe regulaLlons 1he reference Lo
arblLraLlon should be flled wlLhln slx monLhs from Lhe daLe when Lhe dlspuLe
arose
1he Llme Laken by Lhe lSC ls excluded by Lhe arblLraLor whlle conslderlng Lhe
lssue
of llmlLaLlon
211 Code of AdverLlsemenL
1radlng Members of Lhe Lxchange whlle lssulng adverLlsemenLs ln Lhe medla have
Lo
comply wlLh Lhe Code of AdverLlsemenL prescrlbed by Lhe Lxchange ln pursuance
of
LhaL a copy of an adverLlsemenL has Lo be submlLLed Lo Lhe Lxchange Lo geL a
prlor
approval before lLs lssue ln publlcaLlon/medla 1he Lradlng members may apply
for
approval of adverLlsemenL as per Lhe appllcaLlon formaL 1radlng Members noL
complylng
wlLh Lhe Code of AdverLlsemenL may have Lo face dlsclpllnary proceedlngs
1he code of AdverLlsemenL ls as follows
1 1he Lerm adverLlsemenL as referred ln Lhls code means and lncludes any
documenL pamphleLs clrculars brochures noLlce or any research reporLs
maLerlal
publlshed or deslgned for use ln a newspaper magazlne or oLher perlodlcal
radlo
Lelevlslon Lelephone or Lape recordlng vldeo Lape dlsplay slgns or blll boards
moLlon
plcLures Lelephone dlrecLorles (oLher Lhan rouLlne llsLlngs) or oLher publlc medla
wheLher
ln prlnL or audlo vlsual form
2 1he 1radlng Member should deslgnaLe and auLhorlse a person Lo ensure Lhe
correcLness of Lhe lnformaLlon glven ln any adverLlsemenL
3 1he 1radlng Member lssulng any such adverLlsemenL should lnform Lhe name
of
such auLhorlzed person Lo Lhe Lxchange
4 1he adverLlsemenL should be relaLed Lo Lhe naLure of servlces LhaL Lhe 1radlng
Member can offer lf Lhe 1radlng Member ls engaged ln any oLher buslness Lhen
any
adverLlsemenL lf permlsslble for such buslness should noL lndlcaLe Lhe name of
Lhe
1radlng Member as a member of Lhe Lxchange38
3 1he adverLlsemenL should be wrlLLen ln clear language and should noL be such
whlch may pre[udlce lnLeresL of Lhe lnvesLors ln general
6 1he adverLlsemenL should noL conLaln any confuslng mlsleadlng or offenslve
lnformaLlon
7 lL should be free from lnaccuracles
8 1he adverLlsemenL should noL conLaln a recommendaLlon regardlng purchase
or
sale of any parLlcular share or securlLy of any company lL should noL make any
promlse
lncludlng guaranLeelng of any reLurn Lo Lhe lnvesLlng publlc
9 1he maLerlal should noL conLaln anyLhlng LhaL ls oLherwlse prohlblLed
10 1he AdverLlsemenL shall conLaln
a name and/or hls logo code of naLlonal SLock Lxchange membershlp
b 8eglsLraLlon no alloLLed by Lhe SecurlLles and Lxchange 8oard of lndla
11 1he AdverLlsemenL may be lssued lndlvldually or [olnLly wlLh oLher 1radlng
Members provlded LhaL Lhe 1radlng Member shall noL allow lLs name Lo be
adverLlsed or
caused Lo be publlshed ln Lhe adverLlsemenL of oLher 1radlng Members unless
such
adverLlsemenL ls lssued by lL
12 ln Lhe evenL of suspenslon of any 1radlng Member by Lhe Lxchange Lhe
1radlng
Member so suspended shall noL lssue any adverLlsemenL elLher slngly or [olnLly
wlLh any
oLher 1radlng Member durlng Lhe perlod of suspenslon
13 ln Lhe evenL of any proceedlng/acLlon lnlLlaLed agalnsL a 1radlng Member by a
regulaLory body oLher Lhan naLlonal SLock Lxchange naLlonal SLock Lxchange
reserves
Lhe rlghL Lo dlrecL Lhe 1radlng Member Lo refraln from lssulng any adverLlsemenL
for such
a perlod as lL may deem flL
14 naLlonal SLock Lxchange reserves Lhe rlghL Lo call for Lhe adverLlsemenL
and/or
such oLher lnformaLlon/explanaLlon as lL may requlre afLer Lhe publlcaLlon of Lhe
sald
adverLlsemenL naLlonal SLock Lxchange shall have cease and deslsL powers ln
Lhls
behalf
13 1he copy of such adverLlsemenL should be reLalned for a perlod of Lhree
years
16 A copy of Lhe adverLlsemenL musL be submlLLed Lo Lhe Lxchange wlLhln seven
days before Lhelr lssue lf Lhe adverLlsemenL ls found Lo vlolaLe any provlslons of
Lhe
8ules and 8ye laws of Lhe Lxchange or rules framed by Lhe SL8l on Lhls behalf
Lhe
1radlng Member shall be sub[ecL Lo dlsclpllnary proceedlngs by Lhe Lxchange39
17 1hese norms wlll apply Lo any oLher lnvesLmenL/consulLancy agencles
assoclaLed
wlLh Lhe 1radlng Member concerned
18 1he above norms shall also apply Lo an adverLlsemenL 1v or Cable 1v or any
oLher such medla of audlo/vlsual naLure
19 1he 1radlng Members should check wlLh Lhe Lxchange ln case of any doubL for
advlce prlor Lo Lhe lssue of any such maLerlal or adverLlsemenL
20 1he adverLlsemenL should noL have any adverse reference regardlng Lhe
repuLaLlon
of any oLher 1radlng Members and also of Lhe Lxchange Whlle preparlng any
adverLlsemenL a 1radlng Member should keep ln mlnd LhaL any lnformaLlon lf
found Lo be
lncorrecL wlll affecL noL only Lhe repuLaLlon of Lhe parLlcular 1radlng Member buL
also Lhe
repuLaLlon of Lhe 1radlng Members of Lhe Lxchange ln general and also on Lhe
Lxchange
lLself
21 ln Lhe evenL of any 1radlng Member of Lhe Lxchange havlng any grlevance
agalnsL any oLher 1radlng Member consequenL upon Lhe publlcaLlon of
adverLlsemenL of
Lhe oLher 1radlng Member Lhe Lxchange shall be lnformed of Lhe same ln wrlLlng
wlLhln
a perlod of seven days from Lhe daLe of such publlcaLlon for necessary remedlal
measure
from Lhe Lxchange
SL8l has advlsed Lhe sLock exchanges Lo ensure LhaL Lhelr brokers/subbrokers do
noL
adverLlse Lhelr buslness lncludlng ln Lhelr lnLerneL slLes by subsldlarles group
companles
eLc ln prohlblLlon of code of conducL7 1he code of conducL ln Lhe regulaLlons
requlre a
sLock broker/subbroker noL Lo adverLlse hls buslness publlcly unless permlLLed by
Lhe
sLock exchange and noL Lo resorL Lo unfalr means lnduclng cllenLs from oLher
sLock
brokers

7
A s speclfled ln Lhe Schedule ll of Lhe SL8l (SLock 8rokers and Subbrokers)
8egulaLlons
1992 (SL8l clrcular 8ef no SMu8/ollcy/Clr49/2001 uaLed CcLober 22 2001)
40
CPA1L8 3 18AulnC
31 lnLroducLlon
ln Lhe pasL Lhe Lradlng on sLock exchanges ln lndla was based on open ouLcry
sysLem under Lhe sysLem brokers assemble aL a cenLral locaLlon usually Lhe
exchange Lradlng rlng and Lrade wlLh each oLher 1hls was Llme consumlng
lnefflclenL and lmposed llmlLs on Lradlng volumes and Lradlng hours ln order Lo
provlde efflclency llquldlLy and Lransparency nSL lnLroduced a naLlonwlde on
llne
fullyauLomaLed screen based Lradlng sysLem (S81S) under Lhls sysLem a Lradlng
member can punch lnLo Lhe compuLer Lhe number of securlLles and Lhe prlces aL
whlc h he would llke Lo LransacL 1he LransacLlon ls execuLed as soon as lL flnds a
maLchlng sell or buy order from a counLer parLy See 8ox no 31 for advanLages of
S81S 1hls sysLem was readlly accepLed by markeL parLlclpanLs and ln Lhe very flrsL
year of lLs operaLlon nSL became Lhe leadlng sLock exchange ln Lhe counLry
1echnology has been used Lo carry Lhe Lradlng plaLform from Lhe Lradlng hall of
sLock
exchanges Lo Lhe premlses of brokers nSL carrled Lhe Lradlng plaLform furLher Lo
Lhe Cs aL Lhe resldence of lnvesLors Lhrough Lhe lnLerneL 1hls made a huge
dlfference ln Lerms of equal access Lo lnvesLors ln a geographlcally vasL counLry
llke
lndla
1he Lradlng neLwork ls deplcLed ln llgure 31 nSL has a maln compuLer whlch ls
connecLed Lhrough very Small AperLure 1ermlnal (vSA1) lnsLalled aL nSL offlce
1he
maln compuLer runs on a faulL LoleranL S18A1uS malnframe compuLer aL Lhe
Lxchange 8rokers have Lermlnals (ldenLlfled as Lhe Cs ln Lhe llgure 31) lnsLalled
aL Lhelr premlses whlch are connecLed Lhrough vSA1s/leased llnes/modems
8ox 31 AdvanLages of Lhe Screen8ased 1radlng SysLem (S81S)
lL elecLronlcally maLches orders on a sLrlcL prlce/Llme prlorlLy and hence
cuLs down on Llme cosL and rlsk of error as well as on fraud resulLlng ln
lmproved operaLlonal efflclency
lL allows fasLer lncorporaLlon of prlce senslLlve lnformaLlon lnLo prevalllng
prlces Lhus lncreaslng Lhe lnformaLlonal efflclency of markeLs
lL enables markeL parLlclpanLs lrrespecLlve of Lhelr geographlcal locaLlons
Lo Lrade wlLh one anoLher slmulLaneously lmprovlng Lhe depLh and
llquldlLy of Lhe markeL
lL provldes full anonymlLy by accepLlng orders blg or small from
members wlLhouL reveallng Lhelr ldenLlLy Lhus provldlng equal access Lo
everybody
lL also provldes a perfecL audlL Lrall whlch helps Lo resolve dlspuLes by
logglng ln Lhe Lrade execuLlon process ln enLlreLy 41
SaLelllLe
Malnframe
lnSA1 28
Pu8
An1LnnA

nSL Malnframe 8rokers premlses
llgure 31 1radlng neLwork
An lnvesLor lnforms a broker Lo place an order on hls behalf 1he broker enLers
Lhe
order Lhrough hls personal compuLer whlch runs under Wlndows n1 and sends
slgnal Lo Lhe SaLelllLe vla vSA1/leased llne/modem 1he slgnal ls dlrecLed Lo a
malnframe compuLer aL nSL vla vSA1 aL nSLs offlce A message relaLlng Lo Lhe
order acLlvlLy ls broadcasL Lo Lhe respecLlve member 1he order conflrmaLlon
message ls lmmedlaLely dlsplayed on Lhe C of Lhe broker 1hls order maLches
wlLh
Lhe exlsLlng passlve order(s) oLherwlse lL walLs for Lhe acLlve orders Lo enLer Lhe
sysLem Cn order maLchlng a message ls broadcasL Lo Lhe respecLlve member
1he Lradlng sysLem operaLes on a sLrlcL prlce Llme prlorlLy All orders recelved on
Lhe
sysLem are sorLed wlLh Lhe besL prlced order geLLlng Lhe flrsL prlorlLy for maLchlng
le Lhe besL buy orders maLch wlLh Lhe besL sell order Slmllar prlced orders are
sorLed on Llme prlorlLy basls le Lhe one LhaL came ln early geLs prlorlLy over Lhe
laLer one Crders are maLched auLomaLlcally by Lhe compuLer keeplng Lhe sysLem
LransparenL ob[ecLlve and falr Where an order does noL flnd a maLch lL remalns
ln
Lhe sysLem and ls dlsplayed Lo Lhe whole markeL Llll a fresh order comes ln or Lhe
earller order ls cancelled or modlfled 1he Lradlng sysLem provldes Lremendous
flexlblllLy Lo Lhe users ln Lerms of klnds of orders LhaL can be placed on Lhe
sysLem
Several LlmerelaLed (lmmedlaLe or cancel) prlcerelaLed (buy/sell llmlL and sLop
loss
orders) or volume relaLed (dlsclosed quanLlLy) condlLlons can be easlly bullL lnLo
an
order 1he Lradlng sysLem also provldes compleLe markeL lnformaLlon onllne 1he
markeL screen aL any polnL of Llme provldes compleLe lnformaLlon on LoLal order
depLh ln a securlLy Lhe flve besL buys and sells avallable ln Lhe markeL Lhe
quanLlLy
Lraded durlng Lhe day ln LhaL securlLy Lhe hlgh and Lhe low Lhe lasL Lraded prlce
42
eLc lnvesLors can also know Lhe faLe of Lhe orders almosL as soon as Lhey are
placed
wlLh Lhe Lradlng members 1hus Lhe naLlonal Lxchange for AuLomaLed 1radlng
(nLA1) sysLem provldes an Cpen LlecLronlc ConsolldaLed LlmlL Crder 8ook
(CLCLC8)
LlmlL orders are orders Lo buy or sell shares aL a sLaLed quanLlLy and prlce lf Lhe
prlcequanLlLy condlLlons do noL maLch Lhe llmlL order wlll noL be execuLed 1he
Lerm
'llmlL order book' refers Lo Lhe facL LhaL only llmlL orders are sLored ln Lhe book
and
all markeL orders are crossed agalnsL Lhe llmlL orders slLLlng ln Lhe book Slnce Lhe
order book ls vlslble Lo all markeL parLlclpanLs lL ls Lermed as an 'Cpen 8ook'
32 nLA1 SysLem
nSL ls Lhe flrsL exchange ln Lhe world Lo use saLelllLe communlcaLlon Lechnology
for
Lradlng lLs Lradlng sysLem called naLlonal Lxchange for AuLomaLed 1radlng
(nLA1)
ls a sLaLe ofLhearL cllenL server based appllcaLlon AL Lhe server end all Lradlng
lnformaLlon ls sLored ln an ln memory daLabase Lo achleve mlnlmum response
Llme
and maxlmum sysLem avallablllLy for users lL has upLlme record of 997 lor all
Lrades enLered lnLo nLA1 sysLem Lhere ls unlform response Llme of less Lhan one
second 1he nLA1 sysLem supporLs an order drlven markeL whereln orders maLch
on
Lhe basls of Llme and prlce prlorlLy All quanLlLy flelds are ln unlLs and prlces are
quoLed ln lndlan 8upees 1he regular loL slze and Llck slze for varlous securlLles
Lraded ls noLlfled by Lhe Lxchange from Llme Lo Llme
33 MarkeL 1ypes
1he CaplLal MarkeL sysLem has four Lypes of markeL
(l) normal MarkeL normal markeL conslsLs of varlous book Lypes ln whlch orders
are segregaLed as 8egular LoL Crders Speclal 1erm Crders and SLop Loss Crders
dependlng on Lhe order aLLrlbuLes
(ll) AucLlon MarkeL ln Lhe aucLlon markeL aucLlons are lnlLlaLed by Lhe exchange
on behalf of Lradlng members for seLLlemenL relaLed reasons 1he maln feaLures
of
Lhls markeL are deLalled ln a separaLe secLlon (313) on aucLlon
(lll) Cdd LoL MarkeL 1he odd loL markeL faclllLy ls used for Lhe LlmlLed hyslcal
MarkeL and for Lhe 8lock 1rades Sesslon 1he maln feaLures of Lhe LlmlLed
hyslcal
MarkeL are deLalled ln a separaLe secLlon (314) 1he maln feaLures of Lhe 8lock
1rades Sesslon are deLalled ln a separaLe secLlon (313)
(lv) 8eLall uebL MarkeL 1he 8L1uL81 markeL faclllLy on Lhe nLA1 sysLem of
caplLal markeL segmenL ls used for LransacLlons ln 8eLall uebL MarkeL sesslon
1radlng ln 8eLall uebL MarkeL Lakes place ln Lhe same manner as ln equlLles
(caplLal
markeL) segmenL 1he maln feaLures of Lhls markeL are deLalled ln a separaLe
secLlon
(316) on 8L1uL81 markeL43
34 1radlng SysLem users Plerarchy
1he Lradlng member has Lhe faclllLy of deflnlng a hlerarchy amongsL lLs users of
Lhe
nLA1 sysLem 1hls hlerarchy ls deplcLed ln llgure 32
CorporaLe Manager
8ranch 1 8ranch 2
uealer 11 uealer 12 uealer 21 uealer 22
llgure 32 1radlng SysLem users hlerarchy
1he users of Lhe Lradlng sysLem can logon as elLher of Lhe user Lype 1he
slgnlflcance
of each Lype ls explalned below
(l) CorporaLe Manager 1he corporaLe manager ls a Lerm asslgned Lo a user placed
aL Lhe hlghesL level ln a Lradlng flrm Such a user recelves Lhe endofday reporLs
for
all branches of Lhe Lradlng member 1he faclllLy Lo seL branch order value llmlLs
and
user order value llmlLs ls avallable Lo Lhe corporaLe manager 1he corporaLe
manager
also has faclllLy Lo seL symbol wlse user order quanLlLy llmlL Pe can vlew
ouLsLandlng
orders and Lrades of all users of Lhe Lradlng member and can also cancel/modlfy
ouLsLandlng orders of all users of Lhe Lradlng member
(ll) 8ranch Manager 1he branch manager ls a Lerm asslgned Lo a user who ls
placed under Lhe corporaLe manager 1he branch manager recelves endofday
reporLs for all Lhe dealers under LhaL branch Pe can seL user order value llmlL for
each of hls branch Pe can vlew ouLsLandlng orders and Lrades of all users of hls
branch and can also cancel/modlfy ouLsLandlng order of all users of hls branch
(lll) uealer uealers are users aL Lhe lowesL level of Lhe hlerarchy A dealer can
vlew
and perform order and Lrade relaLed acLlvlLles only for hlmself and do noL have
access Lo lnformaLlon on oLher dealers under elLher Lhe same branch or oLher
branches
33 Local uaLabase
1he local daLabase provldes a fasLer response Llme Lo Lhe users All lnqulrles made
by a user for own orders/Lrades are servlced Lhrough Lhe local daLabase lf
however
a corporaLe manager or branch manager makes lnqulrles for orders of any
deale r/branch manager of Lhe Lradlng flrm Lhen Lhe lnqulry ls servlced by Lhe
hosL
1he daLa sLored ln Lhe local daLabase lnclude sysLem messages securlLy relaLed
lnformaLlon and order/Lrade relaLed daLa of Lhe user44
36 MarkeL hases
1he Lradlng sysLem ls normally made avallable for Lradlng on all days excepL
SaLurdays Sundays and oLher holldays Polldays are declared by Lhe Lxchange
from
Llme Lo Llme A Lradlng day Lyplcally conslsLs of a number of dlscreLe sLages as
below
(l) Cpenlng 1he Lradlng memb er can carry ouL Lhe followlng acLlvlLles afLer logln
Lo
Lhe nLA1 sysLem and before Lhe markeL opens for Lradlng
(a) SeL up MarkeL WaLch (Lhe securlLles whlch Lhe user would llke Lo vlew
on Lhe screen)
(b) vlew lnqulry screens
AL Lhe polnL of Llme when Lhe markeL ls openlng for Lradlng Lhe Lradlng member
cannoL logln Lo Lhe sysLem A message 'MarkeL sLaLus ls changlng CannoL logon
for
someLlme' ls dlsplayed lf Lhe member ls already logged ln he cannoL perform
Lradlng acLlvlLles Llll markeL ls opened
(ll) reopen 1he preopen sesslon ls for a duraLlon of 13 mlnuLes le from 900
am Lo 91 3 a m 1he preopen sesslon ls comprlsed of Crder collecLlon perlod
and
order maLchlng perlod
1he order collecLlon perlod of 8* mlnuLes shall be provlded for order enLry
modlflcaLlon and cancellaLlon (* SysLem drlven random closure beLween 7Lh
and
8Lh mlnuLe) uurlng Lhls perlod orders can be enLered modlfled and cancelled
1he lnformaLlon llke lndlcaLlve equlllbrlum / openlng prlce of scrlp LoLal buy and
sell
quanLlLy of Lhe scrlp ls dlssemlnaLed on Lhe nLA1 1ermlnal Lo Lhe members on
real
Llme basls
lndlcaLlve nll1? lndex value change of lndlcaLlve equlllbrlum prlce Lo
prevlous
close prlce are compuLed based on Lhe orders ln order book and are dlssemlnaLed
durlng preopen sesslon
Crder maLchlng perlod sLarLs lmmedlaLely afLer compleLlon of order collecLlon
perlod
Crders are maLched aL a slngle (equlllbrlum) prlce whlch wlll be open prlce 1he
order maLchlng happens ln Lhe followlng sequence
Lllglble llmlL orders are maLched wlLh ellglble llmlL orders
8esldual ellglble llmlL orders are maLched wlLh markeL orders
MarkeL orders are maLched wlLh markeL orders43
uurlng order maLchlng perlod order modlflcaLlon order cancellaLlon Lrade
modlflcaLlon and Lrade cancellaLlon ls noL allowed 1he Lrade conflrmaLlons are
dlssemlnaLed Lo respecLlve members on Lhelr Lradlng Lermlnals before Lhe sLarL of
normal markeL AfLer compleLlon of order maLchlng Lhere ls a sllenL perlod Lo
faclllLaLe Lhe LranslLlon from preopen sesslon Lo Lhe normal markeL All
ouLsLandlng
orders are moved Lo Lhe normal markeL reLalnlng Lhe orlglnal Llme sLamp LlmlL
orders are aL llmlL prlce and markeL orders are aL Lhe dlscovered equlllbrlum
prlce ln
a slLuaLlon where no equlllbrlum prlce ls dlscovered ln Lhe preopen sesslon all
markeL orders are moved Lo normal markeL aL prevlous day's close prlce or
ad[usLed
close prlce / base prlce followlng prlce Llme prlorlLy Accordlngly normal MarkeL /
Cdd loL MarkeL and 8eLall uebL MarkeL opens for Lradlng afLer closure of pre
open
sesslon le 913 a m 8lock 1radlng sesslon ls avallable for Lhe nexL 33 mlnuLes
from
Lhe open of normal MarkeL
1he openlng prlce ls deLermlned based on Lhe prlnclple of demand supply
mechanlsm 1he equlllbrlum prlce ls Lhe prlce aL whlch Lhe maxlmum volume ls
execuLable ln case more Lhan one prlce meeLs Lhe sald crlLerla Lhe equlllbrlum
prlce
ls Lhe prlce aL whlch Lhere ls mlnlmum unmaLched order quanLlLy ln case more
Lhan
one prlce has same mlnlmum order unmaLched quanLlLy Lhe equlllbrlum prlce ls
Lhe
prlce closesL Lo Lhe prevlous day's closlng prlce ln case Lhe prevlous day's closlng
prlce ls Lhe mldvalue of palr of prlces whlch are closesL Lo lL Lhen Lhe prevlous
day's
closlng prlce lLself wlll be Laken as Lhe equlllbrlum prlce ln case of corporaLe
acLlon
prevlous day's closlng prlce ls ad[usLed Lo Lhe closlng prlce or Lhe base prlce 8oLh
llmlL and markeL orders are reckoned for compuLaLlon of equlllbrlum prlce 1he
equlllbrlum prlce deLermlned ln preopen sesslon ls consldered as open prlce for
Lhe
day ln case lf only markeL orders exlsLs boLh ln Lhe buy and sell slde Lhen order ls
maLched aL prevlous days close prlce or ad[usLed close prlce / base prlce revlous
day's close or ad[usLed close prlc e / base prlce ls Lhe openlng prlce ln case lf no
prlce ls dlscovered ln preopen sesslon Lhe prlce of flrsL Lrade ln Lhe normal
markeL
ls Lhe open prlce
(lll) normal MarkeL Cpen hase 1he open perlod lndlcaLes Lhe commencemenL of
Lradlng acLlvlLy 1o slgnlfy Lhe sLarL of Lradlng a message ls senL Lo all Lhe Lrader
worksLaLlons 1he markeL open Llme for dlfferenL markeLs ls noLlfled by Lhe
Lxchange
Lo all Lhe Lradlng members Crder enLry ls allowed when all Lhe securlLles have
been
opened uurlng Lhls phase orders are maLched on a conLlnuous basls 1radlng ln
all 46
Lhe lnsLrumenLs ls allowed unless Lhey are speclflcally prohlblLed by Lhe Lxchange
1he acLlvlLles LhaL are allowed aL Lhls sLage are lnqulry Crder LnLry Crder
ModlflcaLlon Crder CancellaLlon (lncludlng qulck order cancellaLlon) Crder
MaLchlng
and 1rade CancellaLlon
(lv) MarkeL Close When Lhe markeL closes Lradlng ln all lnsLrumenLs for LhaL
markeL comes Lo an end A message Lo Lhls effecL ls senL Lo all Lradlng members
no
furLher orders are accepLed buL Lhe user ls permlLLed Lo perform acLlvlLles llke
lnqulrles and Lrade cancellaLlon
(v) osLClose MarkeL 1hls closlng sesslon ls avallable only ln normal MarkeL
SegmenL lLs Llmlngs are from 330 M Lo 400 M Cnly markeL prlce orders are
allowed Speclal 1erms SLop Loss and ulsclosed CuanLlLy Crders lndex Crders are
noL allowed 1he Lrades are consldered as normal MarkeL Lrades SecurlLles noL
Lraded ln Lhe normal markeL sesslon are noL allowed Lo parLlclpaLe ln Lhe Closlng
Sesslon
(vl) Surcon Survelllance and ConLrol (Su8CCn) ls LhaL perlod afLer markeL close
durlng whlch Lhe users have lnqulry access only AfLer Lhe end of Su8CCn perlod
Lhe sysLem processes Lhe daLa for maklng Lhe sysLem avallable for Lhe nexL
Lradlng
day When Lhe sysLem sLarLs processlng daLa Lhe lnLeracLlve connecLlon wlLh Lhe
nLA1 sysLem ls losL and Lhe message Lo LhaL effecL ls dlsplayed aL Lhe Lrader
worksLaLlon
37 Logglng Cn
Cn sLarLlng nLA1 appllcaLlon Lhe logon screen appears wlLh Lhe followlng deLall
(l) user lu
(ll) 1radlng Member lu
(lll) assword
ln order Lo slgn on Lo Lhe sysLem Lhe user musL speclfy a valld user lu 1radlng
Member lu and Lhe correspondlng password A valld comblnaLlon of user lu
1radlng
Member lu and Lhe password ls needed Lo access Lhe sysLem llgure 33 shows
screenshoL of log on screen of nLA1 CM 47
llgure 33 Logon Screen of nLA1 CM
lollowlng are Lhe deLalls of Lhe Logon screen
(l) user lu Lach Lradlng member can have mo re Lhan one user lu 1he number of
users allowed for each Lradlng member ls noLlfled by Lhe Lxchange from Llme Lo
Llme Lach user of a Lradlng member musL be reglsLered wlLh Lhe Lxchange and ls
asslgned a unlque user lu
(ll) 1radlng Member lu 1he Lxchange asslgns a Lradlng member lu Lo each
Lradlng member 1he Lradlng member lu ls unlque and funcLlons as a reference
for
all orders/Lrades of dlfferenL users 1hls lu ls common for all Lhe users of a
parLlcular
Lradlng member 1he Lradlng member lu and user lus form a unlque and valld
comblnaLlon
lL ls Lhe responslblllLy of Lhe Lradlng member Lo malnLaln adequaLe conLrol over
Lhe
persons havlng access Lo user lus 1he Lradlng member should requesL Lhe
Lxchange
for changes ln names of Lhe users of user lu especlally when Lhere are changes ln
Lhe users who are deallng on behalf of Lhe Lradlng member
(lll) assword When a user logs ln for Lhe flrsL Llme he has Lo enLer Lhe defaulL
password nLA1CM provlded by Lhe exchange Cn enLerlng Lhls password Lhe
sysLem requesLs Lhe user Lo enLer a new password ln Lhe `new assword fleld
Cn
enLerlng Lhe new password Lhe sysLem requesLs for conflrmaLlon of Lhls new
password 1hls new password ls known Lo Lhe user only See box no 32 for
feaLures
of user lu and assword48
38 Log Cff/LxlL from Lhe AppllcaLlon
Cne can exlL from Lhe appllcaLlon as and when one deslres before Lhe surcon
perlod
Cn lnvoklng Lhe log off screen Lhe followlng opLlons are dlsplayed Lo Lhe user
llgure
34 shows screenshoL of log off screen of nLA1 CM
(l) ermanenL Slgn Cff As Lhe name suggesLs a user can log off permanenLly
from Lhe Lradlng sysLem by selecLlng Lhls opLlon 1he user ls logged off and Lhe log
on screen appears
8ox 32 leaLures of user lu and assword
LocaLlon Speclflc user lu Larller lL was posslble for Lhe members havlng
connecLlvlLy aL more Lhan one locaLlon Lo use Lhe alloLLed user lus
lnLerchangeably from elLher locaLlon 1hls gave rlse Lo varlous sysLems securlLy
relaLed problems 1o reduce such poLenLlal rlsks assoclaLed wlLh Lhe member's
worksLaLlon Lhe exchange asslgns user lu Lo a speclflc locaLlon So whenever a
user aLLempLs Lo log on Lo Lhe Lrader worksLaLlon Lhe sysLem checks for a valld
locaLlon for LhaL user lu ln Lhe daLabase aL Lhe hosL end
assword
1he password should conLaln mlnlmum of slx characLers and maxlmum of
elghL characLers ln lengLh A comblnaLlon of characLers and numbers ls
allowed ln Lhe password
1he password can be changed lf Lhe user deslres so and a new password
can be enLered 1he new password musL be dlfferenL from Lhe old
password
assword appears ln Lhe encrypLed form and Lhus compleLe secrecy ls
malnLalned 1he sysLem ensures Lhe change ln password for all users
(password explry perlod ls parameLerlzed by Lhe exchange)
ln Lhe evenL of Lhe user forgeLLlng hls password Lhe Lradlng member ls
requlred Lo reseL Lhe password from hls corporaLe manager user ld ln
case Lhe corporaLe manager ld ls dlsabled Lhen he ls requlred Lo lnform Lhe
exchange ln wrlLlng requesLlng Lo reseL Lhe password 1he user password
ls reseL Lo Lhe defaulL password seL by Lhe exchange 1he user can logln
by enLerlng a new password as per Lhe procedure ouLllned above
When a user Lrles Lo logln wlLh a wrong password a message 'lnvalld Slgn
on' ls dlsplayed lf Lhree aLLempLs are made by a user Lo log on wlLh an
lncorrecL password Lhen LhaL user ls auLomaLlcally dlsabled ln case of
such an evenL Lhe Lradlng member ls requlred Lo reseL Lhe password from
hls corporaLe manager user ld ln case Lhe corporaLe manager ld ls
dlsabled Lhen he ls requlred Lo makes a wrlLLen requesL Lo Lhe exchange
for reseLLlng of password 1he user password ls reseL Lo Lhe defaulL
password seL by Lhe exchange 1he user can logln by enLerlng a new
password as per Lhe procedure ouLllned above49
(ll) 1emporary Slgn Cff 1emporary slgn off ls a useful feaLure LhaL allows Lhe user
Lo dlsallow Lhe use of Lhe Lradlng sofLware wlLhouL acLually logglng off uurlng a
Lemporary slgnoff perlod Lhe appllcaLlon conLlnues Lo recelve all markeL updaLes
ln
Lhe background 1he user however cannoL enLer orders or make lnqulrles 1hls
allows Lhe user Lo leave Lhe Lradlng sysLem Lemporarlly lnacLlve and prevenLs
unauLhorlzed access Lo Lhe sysLem Cn selecLlng Lhe Lemporary slgn off opLlon a
password enLry screen ls dlsplayed 1he use of Lhe nLA1 sysLem ls enabled on
enLerlng Lhe correcL password 1he Lemporary slgn off ls auLomaLlcally acLlvaLed
when Lhe user ls lnacLlve for a perlod of 3 mlnuLes 1he user has Lo enLer Lhe
password Lo resume acLlvlLles lf Lhree aLLempLs are made Lo slgn on wlLh an
lncorrecL password Lhe user ls permanenLly logged off ln Lhls case Lhe user has
Lo
log on agaln
(lll) LxlL Cn selecLlon of Lhls opLlon Lhe user comes ouL of slgn off screen
llgure 34 Logoff screen of nLA1 CM
39 nLA1 Screen
1he Lrader worksLaLlon screen of Lhe Lradlng member ls dlvlded lnLo Lhe followlng
wlndows30
(l) 1lLle bar lL dlsplays Lradlng sysLem name le nLA1 Lhe Lradlng member name
Lhe user ld user Lype Lhe daLe and Lhe currenL Llme
(ll) 1lcker Wlndow 1he Llcker dlsplays lnformaLlon of all Lrades ln Lhe sysLem as
and when lL Lakes place 1he user has Lhe opLlon of selecLlng Lhe securlLles LhaL
should appear ln Lhe Llcker SecurlLles ln Llcker can be selecLed for each markeL
Lype
Cn Lhe exLreme rlghL hand of Lhe Llcker ls Lhe onllne lndex wlndow LhaL dlsplays
Lhe
currenL lndex value of nSL lndlces namely S Cnx nlfLy S Cnx uefLy Cnx
nlfLy
!unlor S Cnx300 Cnx Mldcap Cnx l1 8ank nlfLy Cnx 100 and nlfLy Mldcap
30
Cnx 8ealLy Cnx MnC Cnx lMCC Cnx Lnergy Cnx lnfra Cnx harma Cnx Su
8ank Cnx SL and Cnx Servlce and lndla vlx 1he user can scroll wlLhln Lhese
lndlces and vlew Lhe lndex values respecLlvely lndex polnL change wlLh reference
Lo
Lhe prevlous close ls dlsplayed along wlLh Lhe currenL lndex value 1he dlfference
beLween Lhe prevlous close lndex value and Lhe currenL lndex value becomes zero
when Lhe nlfLy closlng lndex ls compuLed for Lhe day
1he Llcker wlndow dlsplays securlLles caplLal markeL segmenLs 1he Llcker
selecLlon
faclllLy ls conflned Lo Lhe securlLles of caplLal markeL segmenL only 1he flrsL Llcker
wlndow by defaulL dlsplays all Lhe derlvaLlves conLracLs Lraded ln Lhe luLures
and
CpLlons segmenL
(lll) 1ool 8ar 1he Loolbar has funcLlonal buLLons whlch can be used wlLh Lhe
mouse
for qulck access Lo varlous funcLlons such as 8uy Crder LnLry Sell Crder LnLry
MarkeL 8y rlce (M8) revlous 1rades (1) CuLsLandlng Crder (CC) AcLlvlLy Log
(AL) Crder SLaLus (CS) MarkeL WaLch (MW) Snap CuoLe (SC) MarkeL
MovemenL
(MM) MarkeL lnqulry (Ml) AucLlon lnqulry (Al) Crder ModlflcaLlon (CM) Crder
CancellaLlon (CCxL) SecurlLy LlsL neL oslLlon Cnllne 8ackup SupplemenLary
Menu lndex lnqulry lndex 8roadcasL and Pelp All Lhese funcLlons are also
accesslble Lhrough Lhe keyboard
(lv) MarkeL WaLch Wlndow 1he 'MarkeL WaLch' wlndow ls Lhe maln area of
focus
for a Lradlng member 1hls screen allows conLlnuous monlLorlng of Lhe securlLles
LhaL
are of speclflc lnLeresL Lo Lhe user lL dlsplays Lradlng lnformaLlo n for Lhe selecLed
securlLles
(v) lnqulry Wlndow 1hls screen enables Lhe user Lo vlew lnformaLlon such as
MarkeL by Crder (M8C) MarkeL 8y rlce (M8) revlous 1rades (1)
CuLsLandlng
Crders (CC) AcLlvlLy Log (AL) Crder SLaLus (CS) MarkeL MovemenL (MM)
MarkeL
lnqulry (Ml) neL oslLlon Cnllne 8ackup lndex lnqulry lndlces 8roadcasL MosL
AcLlve SecurlLles and so on 8elevanL lnformaLlon for Lhe selecLed securlLy can be
vlewed
(vl) Snap CuoLe 1he snap quoLe feaLure allows a Lradlng member Lo geL
lnsLanLaneous markeL lnformaLlon on any deslred securlLy 1hls ls normally used
for
securlLles LhaL are noL already seL ln Lhe MarkeL WaLch wlndow 1he lnformaLlon
presenLed ls Lhe same as LhaL of Lhe Marker WaLch wlndow
(vll) Crder/1rade Wlndow 1hls wlndow enables Lhe user Lo enLer/modlfy/cancel
orders and Lo send requesL for Lrade cancellaLlon and modlflcaLlon
(vlll) Message Wlndow 1hls enables Lhe user Lo vlew messages broadcasL by Lhe
exchange such as corporaLe acLlons any markeL news aucLlons relaLed
lnformaLlon
eLc and oLher messages llke order conflrmaLlon order modlflcaLlon order
cancellaLlon orders whlch have resulLed ln quanLlLy freezes/prlce freezes and Lhe
31
exchange acLlon on Lhem Lrade conflrmaLlon Lrade cancellaLlon/modlflcaLlon
requesLs and exchange acLlon on Lhem name and Llme when Lhe user logs ln/logs
off from Lhe sysLem messages speclflc Lo Lhe Lradlng member eLc 1hese
messages
appear as and when Lhe evenL Lakes place ln a chronologlcal order
310 lnvoklng an lnqulry Screen
All lnqulry screens have a selecLlon where Lhe securlLy vlewed can be selecLed
1he
screen shows Lhe deLalls of Lhe securlLy selecLed for LhaL lnqulry 1he deLalls for
each
lnqulry screen are dlscussed below
3101 MarkeL WaLch
1he MarkeL WaLch wlndow ls Lhe Lhlrd wlndow from Lhe Lop of Lhe screen LhaL ls
always vlslble Lo Lhe user 1he MarkeL WaLch ls Lhe focal area for users 1he
purpose
of MarkeL WaLch ls Lo seLup and vlew Lradlng deLalls of securlLles LhaL are of
lnLeresL
Lo users lor each securlLy ln Lhe MarkeL WaLch markeL lnformaLlon ls
dynamlcally
updaLed lollowlng are Lhe key feaLures of MarkeL WaLch Screen
(l) MarkeL lnformaLlon ulsplayed 1he one llne markeL lnformaLlon dlsplayed ln
Lhe markeL waLch screen ls for currenL besL prlce orders avallable ln Lhe 8egular
LoL
book lor each securlLy Lhe followlng lnformaLlon ls dlsplayed
(a) Lhe corporaLe acLlon lndlcaLor Lx/Cum
(b) Lhe LoLal buy order quanLlLy avallable aL besL buy prlce
( c ) besL buy prlce
(d) besL sell prlce
(e) LoLal sell order quanLlLy avallable aL besL sell prlce
(f) Lhe lasL Lraded prlce
(g) Lhe lasL Lrade prlce change lndlcaLor and
(h) Lhe no dellvery perlod lndlcaLor nu
(l) Lhe ercenLage change from prevlous day's closlng prlce'
lf Lhe securlLy ls suspended SuSLnuLu' appears ln fronL of Lhe securlLy lf a
quesLlon mark (?) appears on Lhe exLreme rlghL hand corner for a securlLy lL
lndlcaLes LhaL Lhe lnformaLlon belng dlsplayed ls noL Lhe laLesL and Lhe sysLem wlll
dynamlcally updaLe lL
(ll) lnformaLlon updaLe ln Lhe MarkeL WaLch screen changes ln Lhe besL prlce
and quanLlLles are hlghllghLed on a dynamlc basls (ln all pages of MarkeL WaLch)
lor
example lf Lhe besL prlce changes as a resulL of a new order ln Lhe markeL Lhe
new
deLalls are lmmedlaLely dlsplayed 1he changed deLalls are hlghllghLed wlLh a
change
of colour for a few seconds Lo slgnlfy LhaL a change has occurred 1he blue colour
lndlcaLes LhaL prlce/quanLlLles have lncreased whlle Lhe red colour lndlcaLes LhaL
Lhe
prlce/quanLlLles have decreased
lf Lhe lasL Lraded prlce ls hlgher Lhan Lhe prevlous lasL Lraded prlce Lhen Lhe
lndlcaLor
'+' appears or lf Lhe lasL Lraded prlce ls lower Lhan Lhe prevlous lasL Lraded prlce
Lhen
Lhe lndlcaLor '' appears lf Lhere ls no change ln Lhe lasL Lraded prlce no
lndlcaLor ls
dlsplayed32
1he llsL of securlLles LhaL are avallable for Lradlng on CaplLal MarkeL segmenL ls
avallable ln Lhe SecurlLy LlsL box 1he user has Lhe opLlon Lo seLup securlLles
dlrecLly
from Lhe SecurlLy LlsL wlLhouL Lyplng a slngle characLer on Lhe markeL waLch
screen
1hls ls a qulck faclllLy Lo seLup securlLles lf Lhe user Lrles Lo seLup a securlLy whlch
ls
already presenL ln Lhe markeL waLch one geLs a message LhaL Lhe securlLy ls
already
seLup 1he user also has Lhe opLlon Lo add and deleLe Lhe securlLy seL up ln Lhe
markeL waLch screen as many Llmes as one deslres 1he user can prlnL Lhe
conLenLs
of Lhe MarkeL WaLch seLup by Lhe user 1he user can elLher prlnL Lhe MarkeL
WaLch
on dlsplay or Lhe lull MarkeL WaLch
(lll) MarkeL WaLch uownload A user has Lo seL up securlLles afLer Lhe flrsL
download of Lhe sofLware AfLer seLLlng up Lhe markeL waLch lL ls suggesLed LhaL
Lhe
user should log ouL normally 1hls wlll help Lhe user Lo save Lhe freshly seL up
markeL waLch securlLles ln a flle lf aL any glven Llme when Lhe user has freshly
seL
up a few securlLles and encounLers an abnormal exlL Lhe newly seL up securlLles
are
noL saved and Lhe user may have Lo repeaL Lhe process of seLLlng up securlLles
1he
MarkeL WaLch seLup ls carrled over Lo subsequenL days Lhus averLlng Lhe need Lo
seL
up Lhe MarkeL WaLch on dally basls uurlng Lhe logon sLage Lhe relevanL MarkeL
WaLch deLalls are downloaded from Lhe Lradlng sysLem 1he message dlsplayed ls
`MarkeL WaLch download ls ln progress 1he Llme Laken for Lhe MarkeL WaLch
download depends on Lhe number of securlLles seL up
(lv) SeLLlng up SecurlLles Cne of Lhe besL feaLures of Lhls sofLware ls LhaL Lhe
user has Lhe faclllLy Lo seL up 300 securlLles ln Lhe markeL waLch 1he user can
vlew
up Lo 30 securlLles ln one page of Lhe markeL waLch screen
(v) Lasy navlgaLlon 1he deLalls of Lhe currenL poslLlon ln Lhe MarkeL WaLch
defaulLs ln Lhe order enLry screen and Lhe lnqulry selecLlon screen lL ls Lherefore
posslble Lo do qulck order enLrles and lnqulrles uslng Lhls feaLure 1he defaulL
deLalls
can also be overwrlLLen
(vl) CorporaLe AcLlons lndlcaLlon An lndlcaLor for corporaLe acLlons for a securlLy
ls anoLher feaLure ln markeL waLch 1he lndlcaLors are as follows
xu exdlvldend
x8 exbonus
xl exlnLeresL
x8 exrlghLs
Cu c u mdlvldend
C8 c u mrlghLs
C8 cumbonus
Cl c u mlnLeresL
C* ln case of more Lhan one of Cu C8 C8 Cl
x* ln case of more Lhan one of xu x8 x8 xl
3102 SecurlLy uescrlpLor
lnformaLlon such as SecurlLy name 8ook Closure SLarL and Lnd uaLes LxuaLe
nouellvery SLarL and Lnd uaLes 1lck Slze dally prlce range lace value lSln and
8emarks ls dlsplayed ln Lhe SecurlLy uescrlpLor 1he label u8 le ually rlce
8ange
dlsplays Lhe permlsslble prlce band for a securlLy for Lhe currenL Lradlng day
llgure
33 shows screenshoL of securlLy descrlpLor wlndow ln nLA1 CM33
llgure 33 SecurlLy uescrlpLor ln nLA1 CM
3103 MarkeL by rlce
1he purpose of MarkeL by rlce (M8) ls Lo enable Lhe user Lo vlew ouLsLandlng
orders ln Lhe markeL aggregaLed aL each prlce and are dlsplayed ln order of besL
prlces llgure 36 shows screenshoL of markeL by prlce wlndow ln nLA1 CM
1he flelds LhaL are avallable on Lhe selecLlon screen are Symbol Serles and 8ook
1ype 1he opLlons avallable ln Lhe book Lype fleld are 8egular LoL and 8L1uL81
1he deLalled M8 screen ls spllL lnLo llrsL Llne ueLall Llne and Summary Llne 1he
flrsL llne dlsplays MarkeL 1ype Symbol Serles 1oLal 1raded CuanLlLy PlghesL
1rade
rlce LowesL 1rade rlce LasL 1rade rlce Change ln L1 from revlous uay
Close and Average 1raded rlce 1he deLall llne dlsplays number of 8uy Crders
1oLal
8uy Crder CuanLlLy aL LhaL prlce 8uy Crder rlce Sell Crder rlce 1oLal Sell
Crder
CuanLlLy aL LhaL prlce and number of Sell Crders 1he summary llne dlsplays 1oLal
8uy Crder CuanLlLy and 1oLal Sell Crder CuanLlLy lor speclal Lerm orders Lhe
Lerms
are noL reflecLed ln Lhe M8 screen 8uy orders are dlsplayed on Lhe lefL slde of
Lhe
wlndow and sell orders on Lhe rlghL 1he orders appear ln a prlce/Llme prlorlLy
wlLh
Lhe besL prlced order aL Lhe Lop When any 8egular LoL lnformaLlon currenLly
dlsplayed on Lhe wlndow ls changed (for example as Lhe resulL of a Lrade) Lhls
lnformaLlon ls auLomaLlcally reflecLed ln Lhe M8 le dynamlc updaLlon of M8
screen
ls presenL34
All buyback orders are ldenLlfled by an '*' ln Lhe M8 screen ln case a buyback
order
appears ln Lhe besL flve orders ln Lhe M8 an '*' wlll precede such an order
record ln
addlLlon an '*' wlll appear agalnsL Lhe '1oLal 8uy' fleld ln Lhe M8 lrrespecLlve of
Lhe
order belng ln besL flve orders ln Lhe M8 or noL
Speclal leaLures of M8
(a) 8egular loL speclal Lerm orders can be vlewed ln Lhe M8 1he
percenLage change for lasL Lrade prlce wlLh respecL Lo prevlous days
closlng prlce open prlce (ln case of preopen lndlcaLlve openlng prlce)
hlgh prlce for a day low prlce a day and Lhe average Lrade prlce of Lhe
securlLy ln Lhe glven markeL are Lhe addlLlonal flelds ln Lhe screen
(b) no unLrlggered sLoploss order wlll be dlsplayed on Lhe M8 screen
( c ) Cnly order deLalls for Lhe besL 3 prlces lnformaLlon ls dlsplayed
llgure 36 MarkeL by rlce wlndow ln nLA1 CM
3104 revlous 1rades
1he purpose of Lhe revlous 1rades wlndow ls Lo provlde securlLywlse
lnformaLlon Lo
users for own Lrades 1he flelds LhaL are avallable on Lhe selecLlon screen are
Symbol Serles MarkeL Lype AucLlon number 1radlng Member lu 8ranch lu
ueale r CLl 8uy/Selland 1lme 1he opLlons avallable ln Lhe MarkeL Lype fleld are
normal MarkeL 8L1uL81 Cdd LoL and AucLlon lf Lhe user selecLs Lhe opLlon Lo
vlew
AucLlon MarkeL Lrade deLalls Lhe aucLlon number has Lo be compulsorlly enLered
1he CorporaLe Manager can vlew all Lhe Lrades for all branches or for a speclflc
33
branch under Lhe speclflc branch Lhe user can vlew Lrade deLalls for a speclflc
dealer or for all dealers 1he 8ranch Manager can vlew all deLalls under LhaL
branch
le all prevlous Lrades for all dealers and for all cllenLs or for all dealers or for a
speclflc dealer 1he dealer can vlew prevlous Lrades for own user ld only 1he user
can selecL Lhe prevlous Lrades up Lo a parLlcular Llme perlod by enLerlng Lhe
relevanL
Llme ln Lhe Llme fleld
1he deLalled revlous 1rade screen lnformaLlon ls spllL lnLo llrsL Llne ueLall Llne
and
Summary Llne 1he flrsL llne dlsplays MarkeL 1ype Symbol Serles LasL 1rade
rlce
LasL 1rade CuanLlLy LasL 1rade 1lme and 1oLal 1raded CuanLlLy 1he deLall llne
conLalns 8uy/Sell lndlcaLor 8C/CLl lndlcaLor (where 8C and C CLl) Crder
number 1rade number 1rade CuanLlLy 1rade rlce and 1rade 1lme 1he
summary
llne conLalns 1oLal number of 8uy 1rades 1oLal 8uy CuanLlLy 1raded 1oLal 8uy
1raded value Average 8uy 1raded rlce 1oLal number of Sell 1rades 1oLal Sell
CuanLlLy 1raded 1oLal Sell 1raded value and Average Sell 1raded rlce revlous
1rade Screen dlsplays Lhe cllenL accounL number also reopen lndlcaLor ls
dlsplayed
as " for all reopen 1rades
1rades are dlsplayed ln a reverse chronologlcal order llrsL all buy Lrades are
dlsplayed and Lhen sell Lrades are dlsplayed A faclllLy ls provlded Lo users Lo vlew
Lhelr Lrades for 8u? slde or SLLL slde or ALL by selecLlng Lhe 8u?/SLLL/ALL fllLer ln
prlmary wlndow 8y defaulL Lhe fllLer ls on ALL Cnce Lhe query ls execuLed wlLh
Lhe
fllLer Lhe Lrades are dlsplayed wlLh Llme sorLlng for Lhe chosen fllLer opLlon 1hls
funcLlonallLy only works for self and noL for hlerarchal lnqulry
Speclal leaLures of revlous 1rades
(a) 1rade cancellaLlon can be requesLed from Lhe revlous 1rade screen 1hls
faclllLy ls avallable only for member's own Lrades 1he CorporaLe Manager can
requesL for Lrade cancellaLlon for any branch or any dealer 1he 8ranch
Manager can requesL for Lrade cancellaLlon for any dealer under LhaL branch
1he dealer can requesL for Lrade cancellaLlon only for Lrades under LhaL user
ld
(b) 1he user can requesL Lhe Lxchange Lo modlfy only Lhe cllenL code fleld
CurrenLly Lrade modlflcaLlon faclllLy ls noL enabled on Lradlng sysLem
3103 CuLsLandlng Crders
1he purpose of CuLsLandlng Crders ls Lo enable Lhe user Lo vlew Lhe ouLsLandlng
orders for a securlLy An ouLsLandlng order ls an order LhaL has been enLered by
Lhe
user buL whlc h has noL yeL been compleLely Lraded or cancelled 1he user ls
permlLLed Lo see hls orders
1he flelds whlch are avallable on Lhe selecLlon screen are Symbol Serles 8ook
Lype
AucLlon number 8ranch lu uealer 8C/CLl and 1lme 1he opLlons avallable ln
Lhe
8ook Lype fleld are re open 8egular LoL 8L1uL81 Cdd LoL SLop Loss and
AucLlon
lf Lhe user selecLs Lhe opLlon Lo vlew AucLlon MarkeL Lrade deLalls Lhe AucLlon
number has Lo be compulsorlly enLered When Lhe user selecLs re open book ln
Lhe
deLalled screen only pre open ouLsLandlng orders wlll be dlsplayed ln Lhe deLalled
screen
preopen orders wlll have an ldenLlfler ''36
1he corporaLe manager can vlew all Lhe CuLsLandlng Crders for all branches or for
a
speclflc branch under Lhe speclflc branch Lhe user can vlew CuLsLandlng Crders
deLalls for a speclflc dealer or for all dealers Slmllarly lL ls posslble Lo vlew all
CuLsLandlng Crders for a parLlcular cllenL or for all cllenLs under a dealer 1he
8ranch
Manager can vlew all CuLsLandlng Crders deLalls under LhaL 8ranch le all
CuLsLandlng Crders for all dealers and for all cllenLs or for all dealers or for a
speclflc
dealer 1he dealer can vlew CuLsLandlng Crders for own user ld only
1he deLalled ouLsLandlng orders screen ls spllL lnLo llrsL Llne and ueLall Llne 1he
flrsL llne conLalns Symbol Serles MarkeL 1ype SecurlLy SLaLus Label CurrenL
1lme
and CurrenL uaLe 1he deLall llne conLalns 8ook 1ype user lu CllenL A/C number
Crder number Crder CuanLlLy endlng and Crder rlce
1he orders are llsLed on Lhe basls of prlce/Llme prlorlLy 1he orders are dlsplayed
ln
order of 8egular LoL orders and Lhen SLop Loss orders CuLsLandlng order screen
ls
noL dynamlcally updaLed buL Lhe user has opLlon Lo refresh Lhe CuLsLandlng
Crders
screen by relnvoklng Lhe lnqulry
Speclal leaLures of CuLsLandlng Crders
(a) 1he user can modlfy orders from Lhe ouLsLandlng orders screen
(b) 1he user can cancel orders from Lhe ouLsLandlng orders screen
( c ) 1he user can vlew sLaLus of a parLlcular order from Lhe ouLsLandlng
orders screen
3106 AcLlvlLy Log
1he AcLlvlLy Log (AL) shows all Lhe acLlvlLles LhaL have been performed on any
order
belonglng Lo LhaL user 1hese acLlvlLles lnclude order modlflcaLlon/cancellaLlon
parLlal/full Lrade and Lrade modlflcaLlon/cancellaLlon lL dlsplays lnformaLlon of
only
Lhose orders ln whlch some acLlvlLy has Laken place lL does noL dlsplay Lhose
orders
on whlch no acLlvlLy has Laken place
1he flelds LhaL are avallable on Lhe selecLlon screen are Symbol Serles MarkeL
1ype
8ranch lu uealer 8C/CLl and CllenL AccounL number 1he Symbol Serles and
MarkeL 1ype flelds are compulsory 1he opLlons avallable ln Lhe MarkeL 1ype fleld
are
re open normal MarkeL 8L1uL81 Cdd LoL and AucLlon A re open ldenLlfler
''
wlll be dlsplayed for re open orders ln AcLlvlLy Log screen
1he deLalled AL screen ls spllL lnLo flrsL llne and deLall llne 1he flrsL llne dlsplays
MarkeL 1ype Symbol Serles CurrenL 1lme and CurrenL uaLe 1he deLall llne
conLalns user ld Crder number 8C/CLl lndlcaLor (where 8C CCLl)
8uy/Sell
lndlcaLor Crder quanLlLy Crder prlce Crder 1erms/1rade number ulsclosed
CuanLlLy Ml lndlcaLor Ml CuanLlLy AcLlvlLy lndlcaLor and AcLlvlLy 1lme Cne
llne
appears for each acLlvlLy LhaL has Laken place Loday lor example lf a buy order ls
Lraded agalnsL Lhree separaLe sell orders Lhen Lhe acLlvlLy log for Lhe buy order
shows Lhree separaLe llnes and Lhe orlglnal order deLalls
1he followlng acLlvlLles are dlsplayed
8 lor buy orders Lhls lndlcaLes a maLch37
S lor sell orders Lhls lndlcaLes a maLch
CC 1hls lndlcaLes an order was cancelled
CM 1hls lndlcaLes an order was modlfled 1he deLalls dlsplayed are Lhe
order afLer lL was modlfled
1C lor boLh buy and sell orders Lhls lndlcaLes LhaL a Lrade lnvolvlng Lhls
order was cancelled
1M lor boLh buy and sell orders Lhls lndlcaLes LhaL a Lrade lnvolvlng Lhls
order was modlfled
Speclal Lerms assoclaLed wlLh Lhe order are dlsplayed Lo help ldenLlfy Lhe order
Speclal leaLures of AcLlvlLy Log
(a) 1he AL glves deLalls of all acLlvlLles ln chronologlcal orders
(b) WlLhln Lhe order number Lhe deLalls appear wlLh Lhe oldesL acLlvlLy
flrsL and Lhe laLesL lasL
( c ) 1he acLlvlLy conslsLs only of orders enLered by Lhe requesLlng Lradlng
member
(d) 1hls lnqulry opLlon ls noL avallable Lo users ln lnqulry mode
3107 Crder SLaLus
1he purpose of Lhe Crder SLaLus (CS) ls Lo look lnLo Lhe sLaLus of one of dealer's
own
speclflc orders 1he screen provldes Lhe currenL sLaLus of orders and oLher order
deLalls 1he order sLaLus screen ls noL dynamlcally updaLed ln case Lhe order ls
Lraded Lhe Lrade deLalls are also dlsplayed ln case of mulLlple Lrades Lhe dlsplay
ls
scrolled
1o vlew Lhe sLaLus of a parLlcular order enLer Lhe order number for
whlch Lhe order sLaLus ls Lo be vlewed ln Lhe selecLlon screen of CS
1he flrsL parL of Lhe order number (le Lodays daLe) ls defaulLed 1he
user has Lo enLer Lhe second parL of Lhe order number lf Lhe user
does noL know Lhe order number Lhen Lhe user can poslLlon Lhe
hlghllghL bar on Lhe deslred order on Lhe CuLsLandlng Crder screen
and Lhen lnvoke Lhe CS screen 1he order number ls dlrecLly defaulLed
ln Lhe Crder SLaLus selecLlon screen AddlLlonally lf lL ls a pre open
order Lhen Lhere wlll be an ldenLlfler '' wlLh Lool Llp as reopen
ldenLlfler" lndlcaLlng LhaL lL ls a reopen order
1he deLalled CS screen ls dlvlded lnLo Lhree parLs 1he flrsL parL covers order
relaLed
lnformaLlon Lhe second parL covers Lhe Lrade relaLed lnformaLlon lf Lhe order has
resulLed ln a Lrade and Lhe Lhlrd parL glves summary deLalls
1he flrsL parL deLalls are ln Lwo llnes 1he flrsL llne glves 8ook 1ype Symbol
Serles
Crder number 1ype (8uy/Sell) 1oLal Crder CuanLlLy Crder rlce 8C/CLl CllenL
A/C number and arLlclpanL lu 1he second llne glves ulsclosed CuanLlLy
Ml/ACn
lndlcaLor Ml CuanLlLy 1rlgger rlce uay lndlcaLor 1 (Crder Modlfled MCu)
lndlcaLor 2 (Crder Cancelled CxL) and lndlcaLor 3 (Crder 1raded 18u) 1he
second parL deLalls are 1rade CuanLlLy 1rade rlce 1rade 1lme and 1rade
number 38
1he Lhlrd parL deLalls are CuanLlLy 1raded 1oday and 8alance CuanLlLy (remalnlng
quanLlLy)
Speclal leaLures of Crder SLaLus
(a) 1he CS provldes Lhe user Lhe currenL sLaLus of Lhe order le wheLher
order has been modlfled order was cancelled order was Lraded or
order has been parLlally Lraded on Lhe prevlous day
(b) lL shows all Lhe order deLalls lL also shows Lhe Lrade deLalls for each
Lrade done agalnsL Lhls order
( c ) 1he daLa ls presenLed ln chronologlcal order Cne llne appears for each
acLlvlLy LhaL has Laken place Loday
(d) 1he dealer can vlew order sLaLus of orders enLered under LhaL uealer
lu only
(e) 1hls lnqulry opLlon ls noL avallable Lo users ln lnqulry mode
3108 Snap CuoLe
1he Snap CuoLe ls a feaLure avallable ln Lhe sysLem Lo geL lnsLanLaneous markeL
lnformaLlon on a deslred securlLy 1hls ls normally used for a securlLy LhaL ls noL
seLup ln Lhe MarkeL WaLch wlndow 1he lnformaLlon dlsplayed for Lhe seL up
securlLy
ls same as LhaL ln MarkeL WaLch wlndow le CorporaLe acLlon lndlcaLor 'Lx/Cum'
Lhe
LoLal buy order quanLlLy besL buy prlce besL sell prlce LoLal sell order quanLlLy
lasL
Lraded prlce lasL Lrade prlce change lndlcaLor and Lhe no dellvery lndlcaLor 'nu'
1he
Snap CuoLe ls dlsplayed for Lhe Llme speclfled by Lhe exchange from Llme Lo Llme
1he dlsplay poslLlon of Snap CuoLe ls reserved and no oLher lnformaLlon overlaps
lL
A user can Lherefore slmulLaneously vlew a regular lnqulry (eg M8) and Lhe
Snap
CuoLe dlsplay
3109 MarkeL MovemenL
1he purpose of Lhe MarkeL MovemenL screen ls Lo provlde lnformaLlon Lo Lhe
user
regardlng Lhe movemenL of a securlLy for Lhe currenL day 1hls lnqulry glves Lhe
snap
shoL for a parLlcular securlLy for a Llme lnLerval as parameLerlsed by Lhe exchange
1he flelds LhaL are avallable on Lhe selecLlon screen are Symbol Serles and
MarkeL
Lype 1he user can selecL Lhe MarkeL 1ype as normal MarkeL 8L1uL81 and Cdd
LoL
markeL llgure 37 shows screenshoL of markeL movemenL wlndow ln nLA1 CM
1he deLalled ouLpuL screen ls glven ln Lwo parLs 1he flrsL parL glves lnformaLlon
regardlng Lhe securlLy for Lhe enLlre day namely Symbol Serles MarkeL 1ype
1oLal
8uy Crder CuanLlLy 1oLal Sell Crder CuanLlLy 1oLal 1raded CuanLlLy Plgh rlce
Low rlce Cpen rlce and LasL 1raded rlce 1he second parL glves lnformaLlon
for a
parLlcular Llme lnLerval namely 1lme lnLerval 8uy Crder CuanLlLy Sell Crder
CuanLlLy 1raded CuanLlLy Plgh rlce and Low rlce
1he user can save Lhe MarkeL MovemenL screen by speclfylng Lhe dlrecLory and
flle
name Lo save Lhe lnformaLlon 1hls flle can be vlewed ln MSuCS edlLor
Speclal leaLures of MarkeL MovemenL39
(a) 1he MarkeL MovemenL screen provldes lnformaLlon Lo Lhe user
regardlng Lhe movemenL of a securlLy for Lhe currenL day on
orders/Lrades done Loday
(b) 1he lnformaLlon dlsplayed ls from Lhe Llme Lhe markeL was opened
Loday and ln chronologlcal sequence
llgure 37 MarkeL MovemenL wlndow ln nLA1 CM
31010 MarkeL lnqulry
1he purpose of Lhe MarkeL lnqulry ls Lo enable Lhe user Lo vlew Lhe markeL
sLaLlsLlcs
for a parLlcular markeL for a securlLy lL also dlsplays Lhe open prlce and prevlous
close prlce for a securlLy
1he flelds LhaL are avallable on Lhe selecLlon screen are Symbol Serles and
MarkeL
Lype 1he user can selecL markeL Lype as normal 8L1uL81 and Cdd LoL 1he
deLalled ouLpuL screen ls glven ln Lwo parLs 1he flrsL llne dlsplays Symbol Serles
SecurlLy SLaLus CorporaLe AcLlons lndlcaLor 1 CorporaLe AcLlons lndlcaLor 2
CorporaLe AcLlons lndlcaLor 3 1oLal 1raded CuanLlLy 32 Week Plgh and 32 Week
Low 1he second llne dlsplays Closlng rlce Cpenlng rlce Plgh rlce Low rlce
LasL 1raded rlce and neL change from closlng prlce 1he Lhlrd llne dlsplays LasL
1raded CuanLlLy LasL 1raded 1lme and LasL 1raded uaLe 1he fourLh llne dlsplays
8esL 8uy Crder CuanLlLy 8esL 8uy Crder rlce 8esL Sell Crder rlce and 8esL Sell
Crder CuanLlLy
Speclal leaLures of MarkeL lnqulry
(a) 1hls screen ls noL dynamlcally updaLed lL dlsplays Lhe securlLy sLaLus
of Lhe securlLy selecLed S lndlcaLes LhaL Lhe securlLy ls suspended '' 60
lndlcaLes LhaL Lhe securlLy ls ln pre open (only for normal markeL) and
ln absence of Lhe above lndlcaLors Lhe securlLy ls open for Lradlng
(b) A n lndlcaLor for corporaLe acLlons for a securlLy ls dlsplayed on Lhe
screen 1he lndlcaLors are as follows
Cu cumdlvldend xu exdlvldend
C8 cumrlghLs x8 exrlghLs
C8 cumbonus x8 exbonus
Cl" cumlnLeresL xl" exlnLeresL
( c ) 1he neL change lndlcaLor for lasL Lrade prlce wlLh respecL Lo Lhe
prevlous days closlng prlce and Lhe neL change percenLage for Lhe lasL
Lrade prlce wlLh respecL Lo Lhe prevlous days closlng prlce are
dlsplayed
(d) 1he base prlce of a securlLy for Lhe day ls equal Lo Lhe prevlous days
closlng prlce of Lhe securlLy ln normal clrcumsLances 1hus ln Lhe
markeL lnqulry screen Lhe fleld lndlcaLlng Lhe closlng prlce also glves
Lhe base prlce for Lhe day
(e) lf Lhe base prlce ls manually changed (due Lo a corporaLe acLlon) Lhen
Lhe markeL lnqulry wlll noL dlsplay Lhe new base prlce ln Lhe closlng
prlce fleld
31011 AucLlon lnqulry
1he purpose of AucLlon lnqulry (Al) ls Lo enable Lhe users Lo vlew Lhe aucLlon
acLlvlLles for Lhe currenL Lradlng day 1hls wlndow dlsplays lnformaLlon abouL
aucLlons currenLly golng on and aucLlons LhaL have been compleLed
1he deLalled llne ln Lhe aucLlon lnqulry screen dlsplays no Serlal number SL
SLaLus of Lhe aucLlon securlLy 1ype 8uy/Sell aucLlon Symbol Serles 8esL 8uy
CLy 8esL 8uy rlce 8esL Sell rlce 8esL Sell CLy AucLlon CLy AucLlon rlce and
SeLLlemenL erlod
1he followlng are Lhe dlfferenL sLaLus dlsplayed for an aucLlon securlLy
S AucLlon ls ln SollclLor erlod
M SysLem ls maLchlng Lhe orders
l AucLlon ls over
x AucLlon ls deleLed
AucLlon ls pendlng and yeL Lo begln
1he user can vlew Lhe aucLlon deLalls of a securlLy seLup ln Lhe markeL waLch by
lnvoklng Lhe aucLlon lnqulry screen afLer hlghllghLlng Lhe aucLlon securlLy 1o vlew
Lhe aucLlon deLalls for all Lhe securlLles Lhe user should blank ouL Lhe conLenLs of
all
Lhe flelds ln Lhe aucLlon lnqulry selecLlon screen 1o vlew Lhe aucLlons afLer a
parLlcular number Lhe user should blank ouL Lhe conLenLs ln Symbol Serles fleld
and enLer Lhe number ln Lhe aucLlon number fleld on Lhe selecLlon screen 1he
aucLlon lnqulry screen Lhen dlsplays all aucLlons from LhaL number onwards 1hls
wlndow ls dynamlcally updaLed llgure 38 shows screenshoL of aucLlon enqulry
wlndow ln nLA1 CM
Change screen61
llgure 38 AucLlon lnqulry wlndow ln nLA1 CM
31012 SecurlLy/orLfollo LlsL
1hls ls a faclllLy for Lhe user for seLLlng up Lhe securlLles ln Lhe markeL waLch
screen
1hls screen also has a new faclllLy of allowlng Lhe user Lo seLup hls own porLfollo
llgure 39 shows screenshoL of securlLy descrlpLor wlndow ln nLA1 CM
(l) SecurlLy LlsL 1he user can selecL securlLles based on Symbol Serles
lnsLrumenL 1ype and MarkeL 1ype A blank/parLlal search for Symbol and Serles ls
also posslble 1he Symbol Serles MarkeL 1ype and SecurlLy name are dlsplayed
based on Lhe selecLlon crlLerla 1he user can also prlnL Lhe selecLed securlLles
(ll) orLfollo LlsL Cnce Lhe securlLy ls selecLed Lhe same can be used for seLLlng
up a porLfollo 1he user can glve a name Lo Lhe llsL so selecLed 1he exlsLlng
porLfollo
can be modlfled and/or removed 1he user can also seLup a parLlcular porLfollo ln
markeL waLch orLfollo creaLed can be used for baskeL order enLry also Crder
flles
can be generaLed based on Lhe porLfollo creaLed uslng baskeL Lradlng opLlon 62
llgure 39 SecurlLy/orLfollo LlsL wlndow ln nLA1 CM
31013 MulLlple lndex 8roadcasL and Craph
1hls screen dlsplays lnformaLlon of nSL lndlces namely S Cnx nlfLy S Cnx
uefLy Cnx nlfLy !unlor S Cnx 300 Cnx 100 Cnx Mldcap Cnx l1 8ank nlfLy
nlfLy Mldcap 30 Cnx 8ealLy Cnx lnfra Cnx Lnergy Cnx lMCC Cnx MnC Cnx
harma Cnx SL Cnx Su 8ank and Cnx Servlce 1he lndlces are labeled
verLlcally
and Lhe lnformaLlon ls dlsplayed agalnsL each lndex horlzonLally 1he daLa
dlsplayed
for each lndex ls as follows
(a) CurrenL lndex
(b) Plgh lndex
( c ) Low lndex
(d) Cpen lndex
(e) Close lndex
(f) change ln CurrenL lndex (wrL prevlous close lndex)
(g) 32 week Plgh
(h) 32 week low
(l) up Moves
([) uown Moves
(k) MarkeL CaplLallsaLlon (ln 8s Lakh)
lndex Craph dlsplays all Lhe lndlces on a real Llme basls Lo Lhe markeL 63
llgure 310 shows screenshoL of mulLlple lndex broadcasL wlndow ln nLA1 CM

llgure 310 MulLlple lndex 8roadcasL wlndow ln nLA1 CM
31014 Cnllne 8ackup
Cn Llne 8ackup ls a faclllLy LhaL Lhe user can lnvoke Lo Lake a backup of all order
and
Lrade relaLed lnformaLlon for Lhe user 1he lnformaLlon avallable ls for Lhe currenL
day only
Cn Lhe selecLlon screen Lhe user can selecL Lhe varlous flelds on whlch Lhe ouLpuL
wlll
be fllLered 1he flelds LhaL can be fllLered are CLl MarkeL 1ype 8ook 1ype
Symbol
Serles lnsLrumenL 1ype uaLe 1lme Crder lndlcaLor 1rade lndlcaLor 8uy/Sell
lndlcaLor Crder numbers and 1rade numbers
1he user ls provlded Lhe opLlon Lo copy Lhe flles Lo any drlve of Lhe compuLer or
on a
floppy dlskeLLe 1hls uLlllLy generaLes Lwo ASCll flles namely CrderLxL and
1radeLxL
1he user can speclfy any fllename for Crders and 1rades 1hls uLlllLy wlll help Lhe
user Lo generaLe Lhe ConLracL noLes 1he user ls requesLed Lo Lake backup flrsL on
Lhe C drlve and subsequenLly copy Lo A drlve Lo avold overloadlng C capaclLy
and abnormal logoff
31013 8askeL 1radlng
1he purpose of baskeL Lradlng ls Lo provlde nLA1 users wlLh a faclllLy Lo creaLe
offllne
order enLry flle for a selecLed porLfollo Cn lnpuLLlng Lhe value Lhe orders are
creaLed
for Lhe selecLed porLfollo of securlLles accordlng Lo Lhe raLlos of Lhelr markeL64
caplLallsaLlons An lcon has been provlded ln Lhe 1oolbar whlch can be selecLed
by
Lhe mouse Lo lnvoke Lhe funcLlonallLy
ln Lhe baskeL Lradlng funcLlonallLy Lhe user flrsL selecLs a porLfollo from combo
box
1he porLfollo ln Lhe combo box ls user deflned porLfollos (whlch can be creaLed or
edlLed from Lhe SecurlLy LlsL screen whlch ls an exlsLlng funcLlonallLy) All users
deflned orLfollos are auLomaLlcally loaded ln Lo Lhe combo box 1he user Lhen
allocaLes an amounL Lo Lhe porLfollo by menLlonlng Lhe amounL ln Lhe AmounL
edlL
box 1he amounL enLered ls ln lakh and musL be less Lhan or equal Lo 8s 3000
lakh
lf Lhe amounL enLered ls noL sufflclenL Lo buy/sell a compleLe baskeL a message
lnsufflclenL amounL for creaLlng Lhe baskeL ls dlsplayed 1hen Lhe user
menLlons
wheLher he wanLs Lo buy or sell Lhe orLfollo by selecLlng a cholce from 8u?/SLLL
combo box 1he user has Lo menLlon Lhe name of offllne order flle whlch would
be
generaLed 1he CuLpuL Cffllne order flle ls always generaLed ln Lhe 8askeL
dlrecLory
of Lhe currenL selecLed logln drlve lf a flle wlLh Lhe glven name already exlsLs Lhen
lL
asks for overwrlLlng Lhe old flle A 8everse llle wlLh Lhe same name ls also
generaLed
ln 8_8askeL dlrecLory of Lhe currenL logln drlve 1he 8everse llle conLalns
reverse
order (lf user has selecLed buy Lhen lL conLalns sell orders and vlceversa) 1he
user
can menLlon order's duraLlon (lCC or day) by selecLlng from a check box 1he user
can also speclfy 8C/CLl orders by selecLlng from Lhe combo box ln case of CLl
orders lL ls compulsory Lo menLlon Lhe accounL number ln Lhe edlL box 1he
parLlclpanL name can be menLloned lf menLloned lL ls verlfled wheLher lL ls a
valld
parLlclpanL or noL
1he amounL menLloned ln Lhe AmounL LdlL 8ox ls dlvlded among Lhe securlLles
of
Lhe porLfollo dependlng on Lhelr currenL markeL caplLallsaLlon and Lhe amounL
allocaLed per securlLy ls used Lo calculaLe Lhe number of shares Lo be boughL /
sold
for LhaL securlLy whlch ls reflecLed ln Lhe offllne order flle 1he number of shares
ls
rounded off Lo Lhe nearesL lnLeger lf Lhe baskeL conLalns any securlLy whose
regular
loL ls noL one Lhen Lhe flle wlll need Lo be correcLed by Lhe user Lo accommodaLe
shares ln Lradable loLs lf Lhe porLfollo conLalns a securlLy whlch ls suspended/noL
ellglble ln Lhe chosen markeL Lhen an error message ls dlsplayed on Lhe screen
All Lhe orders generaLed Lhrough Lhe offllne order flle are prlced aL Lhe avallable
markeL prlce
CuanLlLy of shares of a parLlcular securlLy ln porLfollo ls calculaLed as under
number of Shares of a AmounL * lssued CaplLal for Lhe securlLy
securlLy ln porLfollo CurrenL orLfollo CaplLallsaLlon
where
CurrenL orLfollo SummaLlon LasL 1raded rlce (revlous
CaplLallsaLlon close lf noL Lraded) * number of lssued shares
ln case aL Lhe Llme of generaLlng Lhe baskeL lf any of Lhe consLlLuenLs are noL
Lraded
Lhe welghLage of Lhe securlLy ln Lhe baskeL ls deLermlned uslng Lhe prevlous close
prlce 1hls prlce may become lrrelevanL lf Lhere has been a corporaLe acLlon ln Lhe
securlLy for Lhe day and Lhe same has noL yeL been Lraded before generaLlon of
Lhe
flle Slmllarly baskeL faclllLy wlll noL be avallable for a new llsLed securlLy Llll Lhe
Llme
lL ls Lraded llgure 311 shows screenshoL of baskeL Lradlng wlndow ln nLA1
CM63
1hree porLfollo names vlz nll1?" !unlC8" Cnx100" are provlded ln
SecurlLy /
orLfollo LlsL Lo generaLe offllne order enLry flle uslng baskeL Lradlng faclllLy ln
Lhls
case Lhe flle wlll be generaLed based on free floaL markeL caplLallzaLlon for Lhe
user deflned securlLles under Lhese names
CuanLlLy of shares of a parLlcular securlLy ln porLfollo ls calculaLed as under
number of Shares of a AmounL * lssued CaplLal for Lhe securlLy
securlLy ln porLfollo CurrenL orLfollo CaplLallsaLlon
where
CurrenL orLfollo SummaLlon LasL 1raded rlce (revlous
CaplLallsaLlon close lf noL Lraded) * number of lssued shares* lree
floaL facLor
llgure 311 8askeL 1radlng screen wlndow ln nLA1 CM
31016 8uy 8ack 1rades
As per SL8l noLlflcaLlon daLed november 14 1998 buyback of securlLles ls
permlLLed ln Lhe secondary markeL 1hls ls Lermed as '8uy8ack from Lhe Cpen
MarkeL' ln Lhe open markeL buyback of shares ls permlLLed Lhrough SLock66
Lxchanges havlng elecLronlc Lradlng faclllLy and such buyback orders are requlred
Lo
be ldenLlfled upfronL ln Lhe elecLronlc Lradlng screen as buyback orders
1he purpose of 8uy 8ack 1rade funcLlonallLy ls Lo glve lnformaLlon Lo Lhe markeL
abouL Lhe buy back Lrades execuLed from Lhe sLarL of Lhe buy back perlod Llll
currenL
Lradlng daLe ln Lhe securlLles whose buyback perlod ls currenLly on lL provldes
lnformaLlon abouL Symbol Serles uays hlgh prlce uays Low rlce uay's
WelghLed
Average rlce uay's volume 1oLal volume PlghesL/LowesL/WelghLed Average
rlces
Llll prevlous day 8uy 8ack SLarL Lnd daLe
1he 8uyback 1rade funcLlonallLy provldes users wlLh Lhe lnformaLlon abouL Lhe
buyback Lrades golng ln varlous securlLles 1he fronL screen shows Symbol Serles
Low prlce (1oday) Plgh prlce (1oday) WelghLage Average prlce volume (1oday)
and revlous day volume
1he user afLer selecLlng a parLlcular row from Lhe buyback llsL box can vlew
furLher
lnformaLlon vlz Symbol Serles SLarL daLe Lnd daLe 1oLal 1raded CLy (1lll daLe)
revlous Plgh prlce revlous Low prlce and WL avg rlce Llll daLe of buyback
scheme 1he 8uyback broadcasL updaLes Lhe lnformaLlon
31017 SupplemenLary luncLlons
1hls secLlon dlscusses cerLaln supplemenLary funcLlons of nLA1 such as 8ranch
Crder
value LlmlL MosL AcLlve SecurlLles Colour SelecLlon 8eporL SelecLlon neL
oslLlon
and rlnL SysLem Message
1he supplemenLary menu llsL box has Lhe followlng opLlons
(l) 8eporL SelecLlon
(ll) lull Message ulsplay
(lll) Colour SelecLlon
(lv) rlnL SysLem Message Cn/Cll
(v) rlnL Crder/1rade ConflrmaLlon Sllps Cn/Cff
(vl) 1lcker SelecLlon
(vll) MarkeL MovemenL
(vlll) MosL AcLlve SecurlLles
(lx) 8eprlnL Crder/1rade ConflrmaLlon Sllp
(x) 8ranch Crder value LlmlL
(xl) neL oslLlon and neL oslLlon backup
(xll) Cnllne 8ackup
(xlll) Cne llne/1abular Sllps
(xlv) lndex lnqulry
(xv) user Crder value LlmlL SeLup
(xvl) SecurlLy wlse user Crder CuanLlLy LlmlL SecurlLy wlse user Crder
CuanLlLy LlmlL 8ulk upload
(xvll) Cffllne Crder LnLry
(xvlll) Crder LlmlLs
(xlx) MarkeL rlce proLecLlon funcLlonallLy
(xx) Crder ALLrlbuLes SelecLlon
(xxl) CllenL MasLer MalnLenance
(xxll) lndex 1radlng
(xxlll) 8everse 8askeL on 1radlng CuanLlLy
(xxlv) ulsplay CM 1lcker
(xxv) ulsplay lC 1lcker67
(xxvl) 1rade ConflrmaLlon 8ell
(xxvll) MulLlple 1rade CancellaLlon
(xxvlll) uebarred CllenL MalnLenance
(xxlx) 8eseL user lu
(xxx) Cffllne llle Converslon
(xxxl) rlnL 8havcopy Cn/Cff
(xxxll) 8eseL assword
(xxxlll) AbouL
(l) 8eporL SelecLlon 8eporL selecLlon wlndow allows Lhe user (corporaLe manager
and branch manager) Lo speclfy Lhe number of coples Lo be prlnLed for each
reporL
1he user can updaLe Lhe number of coples for a reporL 1he 8eporL SelecLlon
screen
allows Lhe user (CorporaLe manager and 8ranch Manager only) Lo speclfy Lhe
number of coples Lo be prlnLed for each reporL All Lhe reporLs are generaLed aL
Lhe
end of day Cnce Lhe reporLs are prlnLed Lhe 8eporL SelecLlon screen shows Lhe
daLe
and Lhe Llme Lhe reporLs were prlnLed 1he user can requesL for reprlnLlng any of
Lhe
reporLs 1he reporLs LhaL are avallable Lo Lhe Lradlng member are MarkeL
SLaLlsLlcs
and MarkeL lndlces
(a) MarkeL SLaLlsLlcs 1he purpose of Lhls reporL ls Lo show Lhe markeL
sLaLlsLlcs of LhaL Lradlng day 1hls reporL glves deLalls relaLed Lo all Lhe
securlLles Lraded on LhaL day for all markeLs
(b) MarkeL lndlces A separaLe MarkeL lndlces 8eporL ls also dlssemlnaLed Lo
members whlch conLalns deLalls regardlng Lhe Cpen Plgh Low Close
revlous Close and change over Lhe revlous Close of S Cnx nlfLy
S Cnx uefLy Cnx nlfLy !unlor S Cnx 300 Cnx 100 Cnx Mldcap
Cnx l1 8ank nlfLy nlfLy Mldcap 30 Cnx 8ealLy Cnx lnfra Cnx Lnergy
Cnx lMCC Cnx MnC Cnx harma Cnx SL Cnx Su 8ank and Cnx
Servlce
(ll) lull Message ulsplay 1hls opLlon enables Lhe dlsplay of all Lhe sysLem
messages rlghL from Lhe sLarL of Lhe Cpenlng hase lL ls also posslble Lo fllLer Lhe
messages dependlng on Lhe message code symbol serles 8C/CLl CllenL daLe
and
Llme 1he sysLem messages can be prlnLed lf needed
Message area conLalns user lu for order and Lrade conflrmaLlonmodlflcaLlon
cancellaLlon and re[ecLlon 1he Lrade conflrmaLlonmodlflcaLloncancellaLlon
messages dlsplayed ln Lhe message area wlll conLaln Lhe correspondlng remarks
enLered durlng Lhe order enLry
1he user can fllLer prlnL and save messages ln Lhe message fllLerlng screen Lhe
message code by defaulL shows ALL 1he user has Lhe opLlon Lo selecL Lhe
deslred
message code on whlch Lhe messages can be fllLered 1he messages can also be
fllLered on Symbol Serles 1radlng member Code 8C/CLl/ ALL CllenL A/C
number
uaLe and 1lme flelds
ln case Lhe user deslres Lo fllLer messages for Lradlng members own order/Lrade
relaLed messages '8C' has Lo be speclfled wlLh Lhe Lradlng member code
defaulLlng
ln Lhe 'CllenL AccounL' fleld ln case Lhe user deslres Lo fllLer messages for a
parLlcular cllenL 'CLl' has Lo be speclfled wlLh Lhe cllenL accounL code ln Lhe
'CllenL
AccounL' fleld ln case Lhe user deslres Lo vlew all messages 'ALL' has Lo be68
speclfled and Lhe 'CllenL AccounL' fleld should be blank 1he message fllLer
dlsplays
'ALL' by defaulL when Lhe user lnvokes Lhe full message dlsplay screen
Message area wlll conLaln Lhe machlne number along wlLh Lhe me ssage
speclfylng
from whlch machlne Lhe message have been generaLed An exLra fllLer code has
been
provlded ln Lhe message area Lo fllLer messages on Lhe machlne number
parameLer
1he messages are fllLered as per Lhe selecLlon crlLerla 1he message codes on
whlch
Lhe selecLlon can be made are
Message Code uescrlpLlon of Messages SelecLed
ALL All messages
AuC AucLlon order/Lrade messages
Aul AucLlon lnlLlaLlon messages
LlS All llsLlng relaLed messages
MA 8 Margln vlolaLlon messagesC8u Crder 8elaLed
messages
C1P Mlscellaneous
Su SecurlLy Suspenslon/uesuspenslon
S ? S SysLem Messages
18u 1rades
1he full message dlsplay and fllLered messages can be prlnLed by lnvoklng Lhe
prlnL
command by ensurlng LhaL Lhe prlnLer ls onllne 1he user can save messages by
lnvoklng Lhe Save opLlon on Lhe lull Message ulsplay screen and by speclfylng Lhe
dlrecLory and flle name ln Lhe pop up box Pere an opLlon ls avallable Lo Lhe user
Lo
boLh speclfy Lhe dlrecLory and flle name Lo save messages or Lo choose Lhe
defaulL
dlrecLory le nsecmuser dlrecLory 1hls flle can be vlewed ln MS uCS edlLor
(lll) Colour SelecLlon 1he user can cusLomlse Lhe colours for varlous lnqulry and
oLher Lrader worksLaLlon screens as per cholce 1he background and Lhe
foreground
colours can be selecLed by lnvoklng Lhe Colour SelecLlon opLlon 1he followlng ls
dlsplayed on Lhe colour selecLlon llsL box
(a) LlsL of Screens LlsLs all Lhe screens ln nLA1 sysLem 1he user has Lhe
opLlon of changlng boLh Lhe foreground and Lhe background colours of any
screen
(b) ulsplay Wlndow ulsplays Lhe screen wlLh Lhe changed colours 1o change
Lhe colour of a parLlcular screen Lhe user has Lo poslLlon Lhe hlghllghL bar
on Lhe deslred screen and selecL any one of Lhe slxLeen colour buLLons 1he
change ln Lhe colour can be seen ln Lhe ulsplay wlndow 1he user can reseL
Lhe colour Lo defaulL seLLlng by selecLlng Lhe uefaulL opLlon lL ls Lo be
noLed LhaL Lhe user cannoL selecL Lhe same colour for foreground of an
lnqulry screen
(lv) rlnL SysLem Messages Cn/Cff 1he rlnL SysLem Messages Cn/Cll
enables/dlsables prlnLlng of Lhe sysLem messages as and when Lhey appear ln Lhe
messages wlndow 8y defaulL Lhe opLlon ls seL Lo `Cll 1he user can change Lhe
Cn/Cff poslLlon by presslng Lhe space bar 1he currenL mode (Cn/Cff) ls dlsplayed
for Lhls opLlon on Lhe SupplemenLary Menu screen lLself
(v) rlnL Crder/1rade ConflrmaLlon Sllps Cn/Cff 1he rlnL Crder/1rade
ConflrmaLlon Cn/Cll enables/dlsables prlnLlng of Lhe order/Lrade sllps 8y
defaulL 69
Lhe opLlon ls seL Lo `Cll 1he user can change Lhe Cn/Cff poslLlon by presslng Lhe
space bar 1he currenL mode (Cn/Cff) ls dlsplayed for Lhls opLlon on Lhe
SupplemenLary Menu screen lLself re open ldenLlfler '' ls dlsplayed for re
open
records
(vl) 1lcker SelecLlon 1he Llcker selecLlon screen allows Lhe user Lo seL up Lhe
securlLles LhaL should appear ln Lhe user's Llcker wlndow All Lhe securlLles
avallable
ln Lhe sysLem for a parLlcular markeL are dlsplayed lf a securlLy ls deleLed from
Lhe
sysLem lL ls also removed from Lhe Llcker selecLlon dlsplay 1he selecLlon of
securlLles can be done for each markeL separaLely 1he user can selecL one or all
securlLy Lype for dlsplay
(vll) MarkeL MovemenL 1he purpose of Lhe 'MarkeL MovemenL' screen ls Lo
provlde lnformaLlon Lo Lhe user regardlng Lhe movemenL of a securlLy for Lhe
currenL
day 1hls lnqulry glves Lhe snap shoL for a parLlcular securlLy for a Llme lnLerval as
parameLerlsed by Lhe exchange
(vlll) MosL AcLlve SecurlLles 1hls screen dlsplays Lhe deLalls of Lhe mosL acLlve
securlLles based on Lhe LoLal Lraded value durlng Lhe day 1he number `n ls
parameLerlsed by Lhe Lxchange 1he lnformaLlon provlded on Lhls screen ls noL
dynamlcally updaLed 1he user however can geL Lhe laLesL lnformaLlon by
refreshlng Lhe screen
(lx) 8eprlnL Crder/1rade ConflrmaLlon Sllps AlLhough Lhe order and Lrade sllps
for `conflrmaLlon `modlflcaLlon re[ecLlon and `cancellaLlon sllps can be prlnLed
as and when a parLlcular operaLlon ls performed 1he user however can reprlnL
Lhese sllps laLer durlng Lhe Lradlng day by uslng Lhls opLlon
1he user can selecL Lhe order or Lrade and Lhe Lype of sllps le conflrmaLlon
modlflcaLlon cancellaLlon or re[ecLlon 1here ls faclllLy Lo selecL one or more
operaLlons for prlnLlng Lhe sllps
lor example one can selecL 'conflrmaLlon' as well as 'modlflcaLlon' aL a Llme AfLer
Lhe user speclfles Lhe Lype of sllp Lo be prlnLed Lhe sLarL and end order/Lrade
numbers are auLomaLlcally fllled 1he user has Lo speclfy Lhe range of order or
Lrade
numbers by approprlaLely selecLlng Lhe sLarL and Lhe end order/Lrade numbers
lnlLlally Lhe opLlons have such values LhaL all Lhe order relaLed sllps can be
prlnLed
1he sLarL and Lhe end order numbers conLaln order numb ers LhaL was enLered by
Lhe
user on Lhe currenL day Cn selecLlng rlnL opLlon all Lhe selecLed order/Lrade
sllps
are prlnLed and on selecLlng Lhe Cancel opLlon no sllps are prlnLed
(x) 8ranch Crder value LlmlL SeLup 1he purpose of Lhls screen ls Lo enable
corporaLe manager Lo seLup a llmlL on order enLry for each branch under Lhe
Lradlng
member flrm 1hls opLlon ln supplemenLary menu ls avallable Lo Lhe user only lf
Lhe
user ls a corporaLe manager Cn selecLlon Lhe 8ranch Crder value LlmlL SeLup
s c reen appears 1o vlew Lhe llmlL for a parLlcular branch Lhe user has Lo selecL
Lhe
8ranch lu and Lhe deLalls for Lhe branch le branch name Lhe llmlL seL and Lhe
used
up value are dlsplayed 1he values for Lhe branch order llmlL are dlsplayed ln 8s
lakhs 70
1o change Lhe llmlL for a branch Lhe user has Lo selecL Lhe 'LlmlLed' opLlon and
enLer
Lhe new llmlL ln Lhe 'new LlmlL value' 1he new llmlLs are Lhen updaLed by Lhe
sysLem
1he corporaLe manager can also auLhorlze a branch wlLh unllmlLed order enLry by
cllcklng on 'unllmlLed' 1he user can also prlnL Lhe deLalls of a branch by selecLlng
Lhe rlnL opLlon vlewlng and modlflcaLlon ls posslble durlng markeL hours
A corporaLe manager can seL Lhe branch order value llmlL for any/all branches
elLher
before or durlng Lradlng hours Also Lhe corporaLe manager can vlew Lhe seL llmlL
and Lhe used llmlL any Llme durlng Lhe Lradlng day Whenever Lhe corporaLe
manager
modlfles Lhe branch order llmlL of any of hls branches Lhe branch manager
recelves
a message Lo LhaL effecL aL hls Lrader worksLaLlon
(xl) neL oslLlon and neL poslLlon 8ackup 1he user can lnLeracLlvely vlew hls
neL poslLlon across securlLles 1he neL oslLlon screen dlsplays Symbol Serles
8uy
value (ln lacs) 8uy CLy 8uy Average rlce Sell Average rlce Sell CLy Sell value
(ln lacs) neL CLy and neL value (ln lacs)
lL also dlsplays Lhe Crand 1oLal of 8uy value (ln lacs) 8uy CLy Sell CLy Sell value
(ln lacs) neL value (ln lacs) and neL value Mark Lo MarkeL (ln lacs) neL poslLlon
screen dlsplays Lhe neL Mark Lo markeL value scrlp wlse as well as LoLal neL mark
Lo
markeL value
1he user has Lhe opLlon for selecLlng markeL Lype as normal/8L1uL81/Cdd
LoL/All
1he user can also selecL CllenL 1ype as CLl/8C/All 1he user ls provlded wlLh an
opLlon Lo selecL Lhe cllenL code from Lhe drop down menu Lo vlew Lhe neL
poslLlon
of speclflc cllenL 1he user can refresh Lhe screen Lo updaLe Lhe neL oslLlon and
can
also prlnL Lhe deLalls of Lhe neL oslLlon screen aL any polnL of Llme neL poslLlon
backup ls avallable from Lhe neL poslLlon screen 1he user can selecL Lhe flelds as
Symbol Serles 8C/CLl and CLl A/c number on whlch Lhe ouLpuL would be
fllLered
8y defaulL Lhe ouLpuL flle ls generaLed and sLored as neLposLxL 1he user can
overwrlLe and speclfy any oLher flle name also 1he user has a opLlon of
generaLlng
Lhe ouLpuL flle ln any dlrecLory he wanLs Lo or on a floppy dlskeLLe71
SCuA8L Cll
1hls speclal funcLlonallLy has been added for Lhe user Lo Square of hls poslLlon
1hls can be done by cllcklng Lhe new opLlon Square Cff provlded ln Lhe screen
1he user flrsL needs Lo selecL one or more records from Lhe llsL box 1o selecL all
Lhe
records SelecL All buLLon ls provlded 1o clear all Lhe selecLed records Clear All
buLLon ls provlded
When user cllcks on Square off an offllne flle wlll be generaLed conLalnlng
counLer
orders whlch wlll square off Lhe poslLlon of LhaL parLlcular user 1he offllne flle
generaLed wlll be sLored ln Lhe drlve from where Lhe exe ls relnflaLed 1he name
of
Lhe offllne flle generaLed wlll be SqrCffoslLlonLxL
1he poslLlon can be squared off only for normal MarkeL lf Lhe 8L1uL81 or
CuuLC1
markeL ls selecLed Lhe Square Cff buLLon wlll geL dlsabled
lf ALL ls selecLed from Lhe MarkeL Lype drop down llsL Lhen Lhe poslLlons wlll be
squared off for open poslLlon of nC8MAL MarkeL only
lf Lhe user selecLs 8C or CLl from Lhe CllenL 1ype drop down box Lhen Lhe
poslLlon
would be squared off only for Lhose correspondlng Cpen poslLlons
ln case of CLl lf user selecLs a parLlcular AccounL number Lhen Lhe poslLlon would
be
squared off only for Lhose correspondlng Cpen poslLlons only
1he user ls glven an opLlon Lo generaLe elLher uA?/lCC (lCC ls defaulLed) order
whlle generaLlng Lhe offllne flle72
(xll) Cnllne 8ackup Cn Llne 8ackup ls a faclllLy whlch Lhe user can lnvoke Lo Lake
a backup of all order and Lrade relaLed lnformaLlon for Lhe user 1he lnformaLlon
avallable ls for Lhe currenL day only llgure 312 shows screenshoL of onllne
backup
wlndow ln nLA1 CM
llgure 312 Cnllne 8ackup wlndow ln nLA1 CM
(xlll) Cne llne/1abular Sllps 1he Cne Llne or 1abular sllps ls used Lo selecL Lhe
formaL for prlnLlng conflrmaLlon sllps 8y defaulL Lhe opLlon ls seL Lo Cne Llne
1he
user can change Lhe formaL Lo 1abular sllp by presslng Lhe spacebar 1he currenL
mode ls dlsplayed on Lhe SupplemenLary Menu screen
(xlv) lndex lnqulry lndex lnqulry glves lnformaLlon on revlous Close Cpen
Plgh Low and CurrenL lndex values of S Cnx nlfLy aL Lhe Llme of lnvoklng Lhls
lnqulry screen 1hls screen dlsplays lnformaLlon of S Cnx nlfLy as of Lhe Llme
Lhe
screen was lnvoked on Lhe currenL Lradlng day 1he daLa dlsplayed ls as follows
(a) 32 week Plgh
(b) 32 week Low
(c) Closlng lndex
(d) Cpenlng lndex
(e) Plgh lndex
(f) Low lndex
(g) CurrenL lndex
(h) neL Change
(l) Change73
AL Lhe end of day afLer markeL closure Lhe revlous Close fleld wlll dlsplay currenL
days closlng lndex value 1he user requlres Lo refresh Lhe deLalls of Lhe screen by
relnvoklng Lhe screen
(xv) user Crder value LlmlL SeLup user order value llmlL ls Lhe cumulaLlve value
of orders placed by Lhe user durlng Lhe day across all securlLles 1hls enables Lhe
corporaLe manager Lo seL up dlfferenL llmlLs among Lhe users dependlng upon Lhe
permlLLed user acLlvlLy ln slngle/mulLlple scrlps lor a new user Lhe user order
value
llmlL ls seL as zero by defaulL
Lvery order enLry wlll be checked for user order value llmlL A user ls resLrlcLed Lo
enLer orders greaLer Lhan Lhe order value llmlL speclfled by hls corporaLe
manager
ln case Lhe user order value llmlL ls exhausLed a message Crder
numberrequesL re[ecLed used llmlL cannoL exceed Lhe user order value
llmlL"
ls dlsplayed on Lhe message wlndow screen
lollowlng are Lhe maln feaLures of user order value llmlL funcLlonallLy
(a) A corporaLe manager can seL up branch order value llmlL and user
order value llmlL for all users A branch manager can also seL up Lhe
user order value llmlL for Lhe users under hls branch 1he corporaLe
manager can also query for order llmlLs of any user under Lhe Lradlng
member flrm Whlle Lhe branch manager can vlew Lhe user order llmlLs
of Lhe users under hls branch only
(b) user order value llmlLs are dependenL on branch order value llmlL lL ls
noL posslble for a corporaLe manager Lo seL only branch order value
llmlL and noL asslgn any user order value llmlL lL ls mandaLory for Lhe
corporaLe manager Lo conflgure user order value llmlL 1he branch
manager may also seL up Lhe user order value llmlL for users under hls
branch
( c ) lf a corporaLe manager seLs Lhe branch order value llmlL as 'unllmlLed'
Lhen Lhe user order value llmlL can elLher be seL unllmlLed or a
speclfled llmlL 1he cumulaLlve value of user order value llmlL should
noL exceed Lhe correspondlng branch order value llmlL Also user
order value llmlL cannoL be seL as unllmlLed lf branch order value llmlL
ls seL as speclflc value ln case Lhe corporaLe manager Lrles Lo revlse
Lhe branch order value llmlL Lo a value less Lhan Lhe user order value
llmlL a message CumulaLlve user llmlL exceeded Lhe branch llmlL" ls
dlsplayed on Lhe branch order value llmlL screen
(d) When Lhe corporaLe manager seLs up Lhe user order value llmlL as
speclfled/unllmlLed a message user order value llmlL for user number
has been seL Lo 8s lakh/unllmlLed ls dlsplayed on Lhe
message wlndow screen of Lhe corporaLe manager respecLlve 8ranch
Manager and Lhe concerned user
(e) 1he user order value llmlL can be revlsed durlng Lradlng hours
(f) 1he corporaLe manager/branch manager can also prlnL Lhe user order
value llmlL deLalls
Lxample M/s Agre llnanclal Servlces a Lradlng member on Lhe nSL
has a branch order value of 8s 700 lakh for hls Chennal branch and
8s 630 lakh for kolkaLa branch Chennal branch has Lwo users x and
? wlLh user order value llmlLs of 8s 230 lakh and 8s 300 lakh
respecLlvely kolkaLa branch has one user Z wlLh user order value
llmlL of 8s 330 lakh 1he member applles for a new user aL Chennal 74
WhaL ls Lhe maxlmum user order value LhaL can be seL for Lhe new
user?
1he maxlmum user Crder value llmlL for Chennal ls
8s 700 (8s 230 + 8s 300) 8s130 lakh
(xvl) SecurlLy wlse user Crder CuanLlLy LlmlL SecurlLy wlse user Crder
CuanLlLy LlmlL 8ulk upload 1he Lradlng sysLem has a faclllLy for seLLlng up
8ranch Crder value LlmlL (8CvL) and user Crder value LlmlL (uCvL) 1he
CorporaLe
Manager can seL up 8CvL for each branch and uCvL for all Lhe users (dealers and
8Ms) under hlm 1he 8ranch Manager (8M) can seL Lhe uCvL of Lhe dealers ln hls
branch Sum of Lhe uCvLs of all Lhe users under a parLlcular branch cannoL
exceed
8CvL seL by Lhe corporaLe manager Whlle Lhls enables Lhe corporaLe manager
and
branch manager Lo resLrlcL Lhe LoLal value of order enLered by Lhe users lL ls noL
posslble Lo resLrlcL buylng or selllng ln speclflc securlLles
An addlLlonal faclllLy for seLLlng up SecurlLy wlse userwlse Crder CuanLlLy LlmlLs
(SuCCL) for buy and/or sell has been provlded 1hls funcLlon wlll be avallable only
Lo
Lhe nLA1 users SallenL feaLures of Lhe funcLlonallLy are glven below
(a) 1he corporaLe member ls allowed Lo seL Lhe SuCCL separaLely for buy
and sell orders for each securlLy for all Lhe branch manager and
uealers (excepL lnqulry only users) under hlm lncludlng hlmself
(b) A 'vlew only' faclllLy ls glven Lo Lhe 8M for hls own llmlL and Lhe
dealers under hlm
( c ) vlew only faclllLy ls glven Lo Lhe dealer for hls own llmlL
(d) lor Lhe newly added user or securlLy Lhe SuCCLs record ls noL Lo be
added by defaulL (le no SuCCL wlll be seL for new securlLy or user)
(e) lL ls posslble Lo modlfy Lhe SuCCL anyLlme durlng Lradlng hours and lL
should noL be seL less Lhan Lhe used llmlL for LhaL securlLy
(f) 1he used llmlL fleld ls dlsplayed for buy and sell separaLely for each
securlLy
(g) Any acLlvlLy llke order modlflcaLlon or cancellaLlon ls reflecLed ln used
llmlL flgure for Lhe respecLlve securlLy and respecLlve slde
(h) 1hls llmlL ls appllcable for a symbol across all serles across all Lhe
markeLs
(l) 1he seL value ls noL less Lhan zero
([) ModlflcaLlon of seL llmlLs for a securlLy ls posslble mulLlple Llmes
(k) SuCCL seLLlng opLlon ls glven ln supplemenLary menu
(l) A bulk upload faclllLy Lo seL Lhe securlLy wlse buy sell llmlL Lhrough a
csv flle ls provlded ln case of fallure Lo upload a parLlcular record/s
fallure message wlll be wrlLLen ln Lhe lnpuL flle ln Lhe form of an error
code 1he flle ls reusable
(m) SuCCL bulk upload faclllLy ls noL avallable durlng Lhe markeL hours
(n) AfLer Lhe llmlL ls seL successfully Lhe message wlll be senL Lo Lhe
respecLlve corporaLe manager/ branch manager/dealer
(o) lor a symbol boLh buy and sell quanLlLy can be seL Lo unllmlLed
(p) 1he faclllLy Lo prlnL Lhe seL SuCCL llmlLs ls provlded
(q) A faclllLy Lo llmlL Lradlng Lo Lhe securlLles seL up ln Lhe SuCCL ls
provlded lf llmlL Lradlng opLlon ls seL for Lhe user Lhe user ls allowed
Lo place orders only for symbols seL ln hls SuCCL llsL by Lhe corporaLe
manager lL ls however posslble Lo enable Lhls faclllLy wlLhouL havlng
any securlLy ln Lhe SuCCL llsL whlch prevenLs Lhe user from enLerlng
any fresh orders73
(r) CorporaLe Manager ls glven a faclllLy Lo allow or dlsallow a user from
enLerlng lndex orders 8y defaulL all dealers are allowed Lo place lndex
orders lndex orders are noL valldaLed for SuCCL llmlLs 1he orders
once enLered are updaLed ln Lhe used llmlLs
(s) SeL llmlLs can be seL equal Lo or greaLer Lhan used llmlLs
( L ) lf a symbol ls added/seL ln SuCCL llsL durlng Lhe markeL hours
prevlously used quanLlLles Llll LhaL Llme would be Laken lnLo accounL
(u) lL ls posslble LhaL dealer ls resLrlcLed Lo enLer order ln parLlcular
securlLy buL allowed Lo enLer lndex order and LhaL resLrlcLed securlLy
ls a parL of nlfLy
(v) lf Lhe order ls modlfled by corporaLe manager / branch manager for a
respecLlve dealer Lhen Lhe used llmlL wlll be updaLed accordlngly buL
ln Lhls case lL can exceed Lhe seL llmlL
(w) SuCCL used llmlL ls noL valldaLed and updaLed for AucLlon orders
8ulk upload by corporaLe manager for seLLlng SuCvL for dealers ls
allowed afLer recelvlng Lhe message ln Lhe Lrader work sLaLlon (1WS)
afLer markeL close and ln mornlng Llll cuL off Llme seL by Lhe exchange
before Lhe markeL opens
1he sLrucLure of lnpuL csv flle for bulk upload ls as follows
userld
AcLlon1ype
Symbol
8uy SeL LlmlL
Sell SeL LlmlL
LrrorCode
(xvll) Cffllne Crder LnLry A faclllLy 'Cffllne Crder LnLry' has been lncorporaLed ln
Lhe Lradlng sofLware where Lhe user can generaLe order flle ln a speclflc formaL
ouLslde Lhe Lradlng sysLem and upload Lhe flle ln Lhe sysLem by lnvoklng Lhls
faclllLy
1he user has Lo speclfy Lhe exacL flle locaLlon LhaL can be a hard dlsk drlve or a
floppy drlve 1he sLaLus of Lhe orders so uploaded ls recorded ln lasL Lwo flelds of
Lhe
same flle Cnce Lhe order processlng ls compleLe Lhe user can open Lhe same flle
ln
MSuCS edlLor lf Lhe sysLem asslgns an order number Lhe same ls wrlLLen
agalnsL
Lhe record ln case of any error(s) Lhe correspondlng error code ls wrlLLen agalnsL
Lhe record Cffllne order enLry ls also avallable for 8L1uL81 markeL users can
place
bulk orders ln preopen wlLh book Lype as 'C'
1he user has Lo speclfy Lhe relevanL order flle name ln Lhe Cffllne Crder LnLry
popup
box and Lhen lnlLlaLe Lhe upload process 1he user can also lnLerrupL Lhe ln[ecLlon
of
Lhe orders lL should be noLed LhaL Lhe flle has Lo be ln Lhe formaL as speclfled by
Lhe
Lxchange 1he offllne order enLry faclllLy accepLs comma separaLed flle sLrucLure
(flle
saved as *csv where * ls Lhe flle name)
Advanced Cffllne Crder LnLry
A speclal feaLure Advanced Cffllne Crder LnLry has been lncorporaLed ln Lhe
Lrader
worksLaLlon for all Lypes of users ('CorporaLe Manager ' '8ranch Manager' and
'uealer') excepL 'lnqulry users' 1he user can creaLe an offllne order flle uslng Lhls
feaLure 1hls flle can be used Lo place orders ln bulk 1he user has Lhe opLlon of
addlng modlfylng or deleLlng a record ln Lhe creaLed flle 1he user can also creaLe
76
Lhe flle ln a speclflc formaL (as menLloned below) ouLslde Lhe Lradlng sysLem and
upload Lhe flle ln Lhe sysLem by lnvoklng Lhls faclllLy
(xvlll) Crder LlmlLs An Crder llmlL ls a faclllLy Lo enable Lhe user Lo speclfy
maxlmum value per order and maxlmum quanLlLy per order LhaL can be enLered
from
Lhe Lrader worksLaLlon AL Lhe Llme of order enLry and order modlflcaLlon Lhls
llmlL ls
checked by Lhe sysLem Crder llmlLs are seL by lndlvldual users and are provlded
as
safeLy measure agalnsL any lnadverLenL error durlng daLa enLry whlle enLerlng
orders
lor a user logglng ln for Lhe flrsL Llme order llmlLs are speclfled as unllmlLed by
defaulL ln case speclflc value/quanLlLy ls Lo be speclfled daLa has Lo be enLered ln
Lhe respecLlve lnpuL flelds namely 'Crder value (ln lakh)' 'Crder CuanLlLy' ln
case
unllmlLed ls Lo be speclfled Lhe checkbox allows Lhe user Lo seL 'unllmlLed' as hls
llmlL
1he order llmlLs can be modlfled durlng markeL hours When Lhe user modlfles
Lhese
llmlLs a message 'Max value/CLy for one order has been seL Lo 8sLakh/'
ls
dlsplayed on Lhe message wlndow screen When Lhe user seLs Lhe llmlL as
unllmlLed
a message 'Max value/CLy for one order has been seL Lo unllmlLed' ls dlsplayed
on
Lhe message wlndow screen Whlle modlfylng Lhe values lf elLher of Lhe lnpuL
flelds ls
lefL blank Lhe dealer geLs an error message elLher 'CuanLlLy LlmlL noL LnLered' or
'value LlmlL noL LnLered' respecLlvely ln case Lhe user Lrles Lo modlfy wlLhouL
enLerlng any new values a message 'values noL changed' ls dlsplayed
Whenever Lhe user places an order Lhe order values are valldaLed agalnsL Lhese
values Lo conflne Lhe checklng Lo Lhe Lrader worksLaLlon ln case Lhe user enLers
an
order LhaL exceeds Lhe speclfled quanLlLy llmlL a message 'Crder quanLlLy enLered
exceeds Lhe order llmlL quanLlLy' ls dlsplayed ln case Lhe user enLers an order
whlch
exceeds speclfled order value (order prlce x order quanLlLy) a message 'Crder
value
exceeds order value llmlL' ls dlsplayed 1he quanLlLy check ls always done prlor Lo
order value check Cnly lf boLh values are noL exceeded Lhe order ls senL Lo Lhe
sysLem for furLher processlng ln case of a markeL order lf Lhe order quanLlLy
exceeds Lhe order quanLlLy llmlL Lhe checklng ls done aL Lhe Lrader worksLaLlon
lLself
as ln Lhe case of prlced orders lor order value check however Lhe check ls
performed by Lhe PosL
(xlx) MarkeL rlce proLecLlon funcLlonallLy 1hls funcLlonallLy glves an opLlon Lo
a Lrader Lo llmlL Lhe rlsk of a markeL order wlLhln a preseL percenLage of Lhe LasL
1rade rlce (L1) 1he preseL MarkeL prlce proLecLlon percenLage ls by defaulL seL
Lo
3 of Lhe L1 1he users can change Lhe preseL MarkeL prlce proLecLlon
percenLage
from Lhe Crder LlmlL Screen whlch can be lnvoked from Lhe SupplemenLary
Menu
1he seL percenLage wlll be appllcable Llll Lhe nLrelLdr LxL ls relnflaLed
AL Lhe Llme of order enLry Lhe user can check Lhe cursor ls ln Lhe prlce fleld ln
case
of a buy order Lhe prlce value shown ls Laken as Lhe defaulL prlce whlch ls
greaLer
Lhan L1 by a preseL percenLage ln case of a sell order Lhe defaulL value wlll be
lesser Lhan Lhe L1 by a pre seL percenLage 1he Llme condlLlon ln boLh cases wlll
auLomaLlcally change Lo lCC 1he user has Lhe opLlon Lo change any of Lhe flelds
Slnce Lhe calculaLlons are based on L1 lf broadcasL for Lhe securlLy ls noL
recelved
Lhe defaulL value wlll be MA8kL177
(xx) Crder ALLrlbuLe SelecLlon 1he order aLLrlbuLe selecLlon enables user Lo seL
defaulL parameLers for Lwo flelds 8C/CLl and CusLodlal arLlclpanL ld flelds ln
Lhe
order enLry screens 1he selecLlon screen provldes a faclllLy whereby users can
selecL
or deselecL requlred opLlons 1he 8C/CLl and cusLodlal parLlclpanL lu opLlons as
selecLed by Lhe user ls avallable ln Lhe order enLry screen ln case Lhe user
deselecLs
all opLlons for 8C/CLl Lhe followlng error message ls dlsplayed LlLher 8C or CLl
musL be selecLed" lf a member seLs Lhe defaulL opLlon ln Lhe 8C/CLl fleld as
'8C'
Lhen each Llme Lhe order enLry screen ls lnvoked '8C' wlll be dlsplayed and 'CLl'
wlll noL be avallable Lo Lhe user for order enLry lf a member selecLs '8C' and
'CLl'
Lhen each Llme Lhe order enLry screen ls lnvoked '8C' and 'CLl' wlll be avallable
Lo
Lhe user for order enLry Slmllarly lf a member selecLs 'nCl1' ln Lhe cusLodlal
parLlclpanL fleld only 'nCl1' wlll be dlsplayed on lnvoklng Lhe order enLry screen
lf a
member selecLs broker ld as defaulL opLlon ln Lhe cusLodlal parLlclpanL fleld Lhen
only Lhe broker ld wlll be dlsplayed ln Lhe order enLry screen
8y defaulL Lhls screen has all Lhe opLlons marked for dlsplay ln Lhe order enLry
screen CpLlons can be changed durlng Lradlng hours Powever lf a user exlLs Lhe
nLA1 appllcaLlon and logs ln agaln Lhe requlred parameLers wlll have Lo be
selecLed
agaln for order enLry
1he order enLry screen ls defaulLed aL 8ook 1ype" fleld 1he member ls provlded
wlLh Lhe faclllLy where he can choose Lhe order enLry screen defaulL Lo be 8ook
1ype" or CuanLlLy"
8y defaulL Lhls screen has 8ook 1ype" opLlon marked CpLlons can be changed
durlng Lradlng hours
lf Lhe member selecLs '8ook 1ype' ln 8ook/CuanLlLy fleld Lhe defaulL cursor wlll
be
placed aL 8ook 1ype" ln order enLry screen/order modlflcaLlon screen
lf Lhe member selecLs 'CuanLlLy' ln 8ook/CuanLlLy fleld Lhe defaulL cursor wlll be
placed aL CuanLlLy" ln Lhe order enLry screen excepL lf Lhe markeL waLch ls
blank ln
Lhls case Lhe defaulL cursor wlll be placed aL 8ook 1ype whlle ln Lhe order
modlflcaLlon screen Lhe defaulL cursor wlll be placed aL CuanLlLy"
1hls parameLer selecLed by member wlll remaln even lf Lhe member exlLs Lhe
nLA1
appllcaLlon and unLll Lhe member relnflaLes Lhe nLA1 exe
1he users have been provlded wlLh a faclllLy Lo seL up Lhe lasL enLered CllenL
accounL
number arLlclpanL remarks flelds ln Lhe order enLry screens as Lhe defaulL
values
1hese values wlll be Laken as defaulL Llll Lhe Llme Lhe flelds ln Lhe order enLry
screens
are noL alLered or Lhe nLA1 fronL end ls noL closed Cn seLLlng Lhe checkboxes
Lhe
values enLered ln Lhe prevlous order wlll be Laken as defaulL ln Lhe relevanL flelds
1hese flelds wlll conLlnue Lo have Lhe defaulL values Llll any one of Lhe flelds ls
Loggled or a dlfferenL order ls placed Lach of Lhese Lhree flelds can be Laken as
defaulL lndlvldually or ln any deslred comblnaLlon
An opLlon has also been provlded Lo warn Lhe user lf Lhe accounL number belng
enLered for Lhe cllenL ls noL presenL ln Lhe cllenL masLer flle A checkbox has been
provlded ln Lhe Crder ALLrlbuLe SelecLlon screen Lo enable or dlsable Lhls faclllLy
Cnce Lhe user recelves a warnlng he has Lhe opLlon of enLerlng Lhe cllenL accounL
number and deLalls ln Lhe cllenL masLer and resumes order enLry or sklp Lhls ln
case
of offllne order enLry Lhe warnlng ls for each order ln Lhe lnpuL flle 1he user has
Lhe 78
opLlon of sLopplng Lhe offllne flle by cllcklng on Lhe Cffllne order enLry screen and
cllcklng on Lhe SLop buLLon llgure 313 shows screenshoL of order aLLrlbuLe
wlndow
llgure 313 Crder ALLrlbuLe wlndow ln nLA1 CM
Change screen
(xxl) CllenL MasLer MalnLenance 1hls faclllLy allows Lhe user Lo malnLaln llsL of
cllenL ln Lrader worksLaLlon Along wlLh cllenL code oLher lnformaLlon llke CllenL
name An no arLlclpanL Code can be malnLaln ln cllenL masLer 1he user can
add
modlfy upload or deleLe cllenLs uurlng order enLry when Lhe user selecLs Lhe cll
opLlon and press Lhe down arrow key ln Lhe accounL fleld a drop down llsL of
cllenLs
wlll be enabled 1he user can selecL a parLlcular record by Lyplng Lhe flrsL
characLer
of accounL number Cn presslng LnLer key Lhe accounL number of LhaL record wlll
be
defaulLed ln Lhe AccounL no fleld Also lf parLlclpanL exlsLs for Lhe selecLed
accounL
number Lhe arLlclpanL lu geLs populaLed ln Lhe parLlclpanL fleld of Lhe order
enLry
screen
(xxll) lndex 1radlng 1he purpose of lndex 1radlng ls Lo provlde users wlLh a
faclllLy of buylng and selllng of lndexes ln Lerms of securlLles LhaL comprlses Lhe
79
lndex 1he users have Lo speclfy Lhe amounL and oLher lnpuLs LhaL are senL Lo Lhe
hosL and Lhe hosL generaLes Lhe orders 1he lndex 1radlng enables Lhe users for
buylng or selllng an lndex 8askeL uLLlng orders ln securlLles ln proporLlon LhaL
comprlses Lhe chosen lndex slmulaLes Lhe buylng and selllng of lndex baskeL
lormula used Lo calculaLe no of shares of each securlLy ls
no of Shares of a securlLy ln lndex AmounL * lssued CaplLal for Lhe securlLy *
lree lloaL lacLor
CurrenL MarkeL CaplLallzaLlon of Lhe lndex
CurrenL MarkeL CaplLallzaLlon of Lhe lndex
SummaLlon LasL 1raded rlce (revlous close lf noL Lraded) * no of lssued
shares
1he no of shares are rounded off Lo Lhe nearesL lnLeger lf Lhe lndex baskeL
conLalns any
securlLy whose regular loL ls noL one Lhen Lhe flle wlll need Lo be correcLed by Lhe
user Lo
accommodaLe shares ln Lradable loLs
(xxlll) 8everse 8askeL on 1raded CuanLlLy 1he purpose of 8everse 8askeL
1radlng ls Lo provlde Lhe users wlLh an offllne flle for reverslng Lhe Lrades LhaL
have
Laken place for a baskeL order 1hls flle wlll conLaln orders for dlfferenL securlLles
of
Lhe selecLed baskeL flle 1he Crders wlll be creaLed accordlng Lo Lhe volume of
Lrade
LhaL has Laken place for LhaL baskeL 1hls feaLure can also be used Lo monlLor Lhe
currenL sLaLus of Lhe baskeL flle as Lhe laLesL sLaLus of Lhe orders are dlsplayed ln
Lhe
llsL box 1he funcLlonallLy of creaLlng reverse baskeL offllne order flle based on
orders
aL Lhe Llme of creaLlng Lhe baskeL wlll conLlnue Lo be avallable 1he new
funcLlonallLy
ls anoLher alLernaLlve Lo creaLe Lhe reverse flle based on Lhe Lrades execuLed Llll
Lhe
polnL of Llme
user can lnvoke Lhe funcLlonallLy by selecLlng lL from Lhe supplemenLary menu
Cn
selecLlng Lhe relevanL baskeL flle Lhe deLalls of LhaL flle are loaded ln Lhe llsL box
1he
baskeL flle names ln Lhe combo box are user deflned flle names (whlch can be
creaLed or edlLed from 8askeL 1radlng Screen whlch ls an exlsLlng funcLlonallLy)
All
user deflned baskeL flle names are auLomaLlcally loaded ln Lo Lhe Combo box 1he
user can selecL Lhe baskeL of hls cholce lL ls advlsable Lo creaLe each baskeL wlLh
a
dlfferenL name and clean up Lhe dlrecLorles regularly and noL Lamper wlLh Lhe
orlglnal baskeL flle once lL has been loaded as lL may glve erroneous resulLs
Cn presslng Lhe 8everse buLLon Lhe reverse baskeL flle would be generaLed ln Lhe
818u8ASkL1 folder ln Lhe logln drlve 1he flle would have Lhe same name as Lhe
baskeL flle preflxed wlLh a 8Lv_ lf a flle wlLh Lhe glven name already exlsLs Lhen lL
asks for overwrlLlng Lhe old flle 1he user can menLlon Crder's duraLlon (lCC or
day)
by selecLlng from a check box
(xxlv) ulsplay CM 1lcker 1he ulsplay CM 1lcker ls used Lo enable or dlsable CM
Llcker
(xxv) ulsplay lC 1lcker 1he ulsplay lC 1lcker ls used Lo enable or dlsable lC
Llcker80
(xxvl) 1rade ConflrmaLlon 8ell 1he 1rade conflrmaLlon 8ell ls used Lo enable or
dlsable Lhe bell sound aL Lrade conflrmaLlon
(xxvll) MulLlple 1rade CancellaLlon An addlLlonal faclllLy 'MulLlple 1rade
CancellaLlon' ls provlded Lo Lhe user Lo cancel all Lhe Lrades done by hlm based
on
an order number

(xxvlll) uebarred CllenL MalnLenance 1hls faclllLy allows Lo ma lnLaln a llsL of
uebarred CllenLs 1he user ls provlded opLlon Lo add modlfy save upload or
deleLe
debarred cllenLs uurlng order enLry lf a user Lrles Lo place an order for any
debarred cllenL added ln Lhe uebarred CllenL MasLer Lhen an error message 1he
accounL ls debarred from Lradlng" wlll be dlsplayed on Lhe order enLry screen
(xxlx) 8eseL user lu 1hls wlll faclllLaLe Lhe members Lo LermlnaLe Lhe acLlve
sesslon for users under Lhe Lradlng member 1he faclllLy has been provlded Lo all
corporaLe managers and branch managers A branch manager can LermlnaLe Lhe
acLlve sesslon for all Lhe users of LhaL branch excepL for self AcLlve sesslon of Lhe
branch manager can be LermlnaLed by Lhe corporaLe manager 1he sesslon of Lhe
corporaLe manager can be LermlnaLed only by Lhe Lxchange
(xxx) Cffllne llle Converslon 1he feaLure Cffllne llle Converslon has been
lncorporaLed ln Lhe Lradlng sofLware 1he user can use Lhls funcLlonallLy Lo
converL a
flle wlLh a predeflned formaL lnLo an ouLpuL flle of Cffllne flle formaL 1he user
can
upload Lhls converLed flle uslng Cffllne Crder LnLry funcLlonallLy or Advance
Cffllne
Crder LnLry funcLlonallLy
Whlle uslng Lhe Cffllne llle Converslon luncLlonallLy user has Lo glve Lhe
compleLe
lnpuL flle name (eg CL x ampleLxL) Lhe ouLpuL flle wlll be generaLed aL Lhe
same
locaLlon as of lnpuL flle wlLh Lhe name as fllename_conv" (eg
CLxample_convLxL)
1he Cffllne llle Converslon ls avallable only for normal MarkeL under 8L orders
1he Cffllne llle Converslon faclllLy wlll accepL comma separaLed flle as lnpuL
1hls laclllLy ls noL avallable for Lhe lnqulry user
ln case of any error(s) Lhe correspondlng error code ls wrlLLen agalnsL Lhe record
ln
Lhe ouLpuL flle and opup Lrror ln llle Converslon" ls dlsplayed when Cffllne
llle
Converslon ls compleLed
(xxxl) rlnL 8havcopy Cn/Cff rlnL 8havcopy Cn/Cff" ls used Lo enable or
dlsable Lhe prlnLlng Lhe bhavcopy lnLerlm bhavcopy and lndex bhavcopy reporLs
8y defaulL Lhe opLlon wlll be seL Lo 'Lnable' 1o change Lhe Lnable/ulsable
sLaLus presses Lhe Spacebar 1he currenL sLaLus ls lmmedlaLely dlsplayed on
Lhe supplemenLary menu screen
(xxxll) 8eseL assword 1hls screen enables CorporaLe Manager Lo reseL Lhe
password and Lo enable Lhe users of Lhelr Lradlng member who goL dlsabled
by enLerlng wrong passwords for more Lhan 6 Llmes81
(xxxlll) AbouL 1he AbouL wlndow dlsplays Lhe sofLware relaLed verslon number
deLalls and copyrlghL lnformaLlon
311 Crder ManagemenL
Crder ManagemenL conslsLs of enLerlng orders order modlflcaLlon order
cancellaLlon
and order maLchlng
3111 LnLerlng Crders
1he Lradlng member can enLer orders ln Lhe normal markeL odd loL 8L1uL81 and
aucLlon markeL A user can place orders ln any of Lhe above menLloned markeLs
by
lnvoklng Lhe respecLlve order enLry screens AfLer dolng so Lhe sysLem
auLomaLlcally
plcks up lnformaLlon from Lhe lasL lnvoked screen (eg MarkeL
WaLch/M8/CC/SC
and SecurlLy LlsL) When Lhe user lnvokes Lhe order enLry screen Lhe flelds LhaL
are
Laken as defaulL are Symbol Serles and 8ook 1ype
ln case of oLher flelds Lhe sysLem Lakes Lhe followlng defaulLs
CL y 8egular loL quanLlLy avallable aL besL prlce on counLer slde
rlce rlce of besL counLer order
ro 1radlng member lu of Lhe user
Crder uuraLlon uay
ulsclosed quanLlLy lully ulsclosed
arLlclpanL lu 1radlng member lu of Lhe user
AcLlve asslve Crder
When any order enLers Lhe Lradlng sysLem lL ls an acLlve order lL Lrles Lo flnd a
maLch on Lhe oLher slde of Lhe books lf lL flnds a maLch a Lrade ls generaLed lf lL
does noL flnd a maLch Lhe order becomes a passlve order and goes and slLs ln Lhe
order book
Crder 8ooks
As and when valld orders are enLered or recelved by Lhe Lradlng sysLem Lhey are
flrsL numbered Llme sLamped and Lhen scanned for a poLenLlal maLch 1hls
means
LhaL each order has a dlsLlncLlve order number and a unlque Llme sLamp on lL lf a
maLch ls noL found Lhen Lhe orders are sLored ln Lhe books as per Lhe prlce/Llme
prlorlLy rlce prlorlLy means LhaL lf Lwo orders are enLered lnLo Lhe sysLem Lhe
order havlng Lhe besL prlce geLs Lhe hlgher prlorlLy 1lme prlorlLy means lf Lwo
orders
havlng Lhe same prlce ls enLered Lhe order LhaL ls enLered flrsL geLs Lhe hlgher
prlorlLy 8esL prlce for a sell order ls Lhe lowesL prlce and for a buy order lL ls Lhe
hlghesL prlce
1he dlfferenL order books ln Lhe nLA1 sysLem are as deLalled below
reopen 8ook An order durlng reopen sesslon has Lo be a reopen (C)
order All
Lhe reopen orders are sLacked ln sysLem Llll Lhe reopen phase AL Lhe end of
reopen
phase Lhe maLchlng of reopen orders Lakes place aL Lhe llnal Cpenlng rlce 8y
defaulL
Lhe reopen (C) book appears ln Lhe order enLry screen when Lhe normal
MarkeL ls ln 82
reopen and Lhe securlLy ls ellglble for reopen Sesslon Crder enLry ln preopen
book
Lype ls allowed only durlng markeL sLaLus ls ln preopen
8egular LoL 8ook An order LhaL has no speclal condlLlon assoclaLed wlLh lL
ls a 8egular LoL order When a dealer places Lhls order Lhe sysLem looks for a
correspondlng 8egular LoL order exlsLlng ln LhaL markeL (asslve orders) lf lL
does noL flnd a maLch aL Lhe Llme lL enLers Lhe sysLem Lhe order ls sLacked ln
Lhe 8egular LoL book as a passlve order 8y defaulL Lhe 8egular LoL book
appears ln Lhe order enLry screen ln Lhe normal markeL 8uyback orders can
be placed Lhrough Lhe 8egular LoL (8L) book ln Lhe normal MarkeL 1he
member can place a buyback order by speclfylng '8u?8ACkC8u' ln Lhe CllenL
AccounL fleld ln Lhe order enLry screen Such company buyback orders wlll be
ldenLlfled ln M8 screen by an '*' (asLerlsk) lndlcaLor agalnsL such orders
Speclal 1erms 8ook Crders whlch have a speclal Lerm aLLrlbuLe aLLached Lo
lL are known as speclal Lerms orders When a speclal Lerm order enLers Lhe
sysLem lL scans Lhe orders exlsLlng ln Lhe 8egular LoL book as well as Speclal
1erms 8ook CurrenLly Lhls faclllLy ls noL avallable ln Lhe Lradlng sysLem
SLop Loss 8ook SLop Loss (SL) orders are released lnLo Lhe markeL when Lhe
lasL Lraded prlce for LhaL securlLy ln Lhe normal markeL reaches or surpasses
Lhe Lrlgger prlce 8efore Lrlggerlng Lhe order does noL parLlclpaLe ln maLchlng
and Lhe order cannoL geL Lraded unLrlggered sLop loss orders are sLacked ln
Lhe sLop loss book 1he sLop loss orders can be elLher a markeL order or a
llmlL prlce order lor buy SL orders Lhe Lrlgger prlce has Lo be less Lhan or
equal Lo Lhe llmlL prlce Slmllarly for sell SL orders Lhe Lrlgger prlce has Lo
be greaLer Lhan or equal Lo Lhe llmlL prlce
Cdd LoL 8ook 1he Cdd LoL book can be selecLed ln Lhe order enLry screen ln
order Lo Lrade ln Lhe Cdd LoL markeL Crder maLchlng ln Lhls markeL Lakes
place beLween Lwo orders on Lhe basls of quanLlLy and prlce 1o enLer orders
ln Lhe odd loL markeL selecL Lhe book Lype as CL
8L1uL81 Crder 8ook 8L1uL81 markeL orders can be enLered lnLo Lhe
sysLem by selecLlng Lhe 8L1uL81 Crder book 1hese orders scan only Lhe
8L1uL81 Crder book for poLenLlal maLches lf no sulLable maLch can be
found Lhe order ls sLored ln Lhe book as a passlve order 1o enLer orders ln
Lhe 8L1uL81 markeL selecL Lhe book Lype as u
AucLlon Crder 8ook AucLlon order book sLores orders enLered by Lhe
Lradlng members Lo parLlclpaLe ln Lhe Lxchange lnlLlaLed aucLlons AucLlon
orders can be lnlLlaLor orders compeLlLor orders and sollclLor orders
Symbol Serles
SecurlLles can be Laken as defaulL values from Lhe order enLry screen from any of
Lhe
lnqulry screens such as M8 CC 1 AL Ml and SC ln case Lhe securlLy ls noL seL
up ln Lhe MarkeL WaLch screen Lhe SecurlLy LlsL can also be used Lo Lake Lhe
codes
as defaulL values
Crder enLry ln a securlLy ls noL posslble lf LhaL securlLy ls suspended from Lradlng
Lg lf a securlLy ls suspended ln Lhe normal markeL a message SecurlLy ls83
suspended ln Lhe normal markeL" ls dlsplayed on Lhe order enLry screen 1he label
'Suspended' ls also dlsplayed ln Lhe markeL waLch screen for Lhe seLup securlLy
Crder enLry ls also noL posslble ln case Lhe securlLy ls noL ellglble Lo Lrade ln a
parLlcular markeL Lg lf a securlLy ls noL ellglble Lo Lrade ln Lhe normal markeL a
message SecurlLy ls noL allowed Lo Lrade ln normal markeL" ls dlsplayed on Lhe
order enLry screen ln case Lhe user Lypes Lhe symbol serles lncorrecLly a message
lnvalld symbol serles" ls dlsplayed on Lhe screen
CuanLlLy
When Lhe buy/sell order enLry screen ls lnvoked Lhe regular loL slze avallable aL
Lhe
besL prlce on Lhe counLer slde geLs defaulLed ln Lhe order enLry screen ln case
aucLlon book ls selecLed for dlsplay Lhe quanLlLy has Lo be speclflcally menLloned
by
Lhe user CuanLlLy menLloned should be ln mulLlples of regular loL slze for LhaL
securlLy
CuanLlLy lreeze
All orders wlLh very large quanLlLles wlll recelve quanLlLy alerL aL member
Lermlnal
CurrenLly lf member enLers any order exceedlng Lhe lowesL of Lhe quanLlLy
glven
below resulLs ln an alerL whlch wlll read as Crder enLered exceeds alerL quanLlLy
llmlL Conflrm avallablllLy of adequaLe caplLal Lo proceed" and only afLer Lhe
member
cllcks Lhe buLLon '?es' Lhe order wlll be furLher processed for execuLlon
CuanLlLy lreeze parameLers
(a) 03 of Lhe lssue slze of Lhe securlLy or
(b) value of Lhe order ls around 8s 23 crores or
( c ) a global alerL quanLlLy llmlL of more Lhan 23000 lrrespecLlve of Lhe lssue slze
of Lhe securlLy whlchever ls less
rlce
Along wlLh Lhe regular loL quanLlLy Lhe besL prlce on Lhe counLerslde ls also Laken
as
defaulL value ln Lhe order enLry screen A user has Lhe opLlon Lo elLher enLer Lhe
order aL Lhe defaulL prlce or overwrlLe lL wlLh any oLher deslred prlce lf a user
menLlons a prlce lL should be ln mulLlples of Lhe Llck slze for LhaL parLlcular
securlLy
and wlLhln Lhe day's mlnlmum/maxlmum prlce range oLherwlse Lhe order ls noL
accepLed by Lhe sysLem and an order re[ecLlon message/conflrmaLlon sllp ls
generaLed lor a no prlce band scrlps(scrlp) lf a prlce ouLslde Lhe CperaLlonal
8ange
ls enLered Lhe order resulLs ln a prlce freeze and ls noL accepLed as a valld order
Llll
Lhe Llme Lhe Lxchange approves lL All aucLlon orders requlre Lhe user Lo menLlon
a
prlce
ln case Lhe user enLers an order wlLh a 'MarkeL' prlce Lhe order Lakes Lhe lasL
Lraded
prlce ln Lhe respecLlve markeL as Lhe markeL prlce provlded no passlve order
exlsLs
on Lhe same slde or Lhe counLer slde ln LhaL securlLy and ln LhaL markeL Cn Lhe
oLher hand lf sulLable orders exlsL on Lhe counLer slde Lhen Lhe order Lakes Lhe
prlce of Lhe counLer order and a Lrade ls generaLed lf an order exlsLs on Lhe same
slde buL no orders exlsLs on Lhe counLer slde Lhen Lhe order Lakes Lhe prlce of Lhe
besL order on LhaL slde and ls sLacked lmmedlaLely below lL lf Lhe securlLy has
never
been Lraded Lhen Lhe markeL order Lakes Lhe value of Lhe base prlce and slLs ln
Lhe
books as a passlve order 84
AnoLher opLlon provlded Lo users ln Lhe reopen phase of Lhe normal markeL ls
'A1C' or Lhe 'AL Cpen rlce' concepL 'MarkeL' orders enLered ln Lhe preopen are
Lermed as 'A1C' 8ased on Lhe openlng algorlLhm Lhe sysLem compuLes a
poLenLlal
openlng prlce Cnce Lhe markeL ls open for Lradlng Lhe A1C orders Lake Lhese
prlces
ln case of sLop loss orders a user has Lhe flexlblllLy of speclfylng a llmlL prlce along
wlLh Lhe Lrlgger prlce 1hls llmlL prlce can be selecLed as equal Lo Lhe Lrlgger prlce
ln
Lhe prlce fleld so as Lo leave lL wlLh Lhe word 'rlce' AlLernaLlvely a user can
speclfy
a llmlL prlce as 'MarkeL' prlce
ClrculL 8reakers
1he Lxchange has lmplemenLed lndexbased markeLwlde clrculL breakers ln
compulsory rolllng seLLlemenL wlLh effecL from !uly 02 2001 ln addlLlon Lo Lhe
clrculL breakers prlce bands are also appllcable on lndlvldual securlLles
lndexbased MarkeLwlde ClrculL 8reakers 1he lndexbased markeLwlde clrculL
breaker sysLem applles aL 3 sLages of Lhe lndex movemenL elLher way vlz aL
10
13 and 20 1hese clrculL breakers when Lrlggered brlng abouL a coordlnaLed
Lradlng halL ln all equlLy and equlLy derlvaLlve markeLs naLlonwlde 1he markeL
wlde
clrculL breakers are Lrlggered by movemenL of elLher Lhe 8SL Sensex or Lhe S
Cnx
nlfLy whlchever ls breached earller
(a) ln case of a 10 movemenL of elLher of Lhese lndlces Lhere would be a
onehour markeL halL lf Lhe movemenL Lakes place before 100 pm ln
case Lhe movemenL Lakes place aL or afLer 100 pm buL before 230 pm
Lhere would be Lradlng halL for Z hour ln case movemenL Lakes place aL
or afLer 230 pm Lhere wlll be no Lradlng halL aL Lhe 10 level and
markeL shall conLlnue Lradlng
(b) ln case of a 13 movemenL of elLher lndex Lhere would be a Lwohour
halL lf Lhe movemenL Lakes place before 1 pm lf Lhe 13 Lrlgger ls
reached on or afLer 100 pm buL before 200 pm Lhere shall be a onehour halL
lf Lhe 13 Lrlgger ls reached on or afLer 200 pm Lhe Lradlng
shall halL for remalnder of Lhe day
(c) ln case of a 20 movemenL of Lhe lndex Lradlng shall be halLed for Lhe
remalnder of Lhe day
1hese percenLages are LranslaLed lnLo absoluLe polnLs of lndex varlaLlons on a
quarLerly basls AL Lhe end of each quarLer Lhese absoluLe polnLs of lndex
varlaLlons
are revlsed for Lhe appllcablllLy for Lhe nexL quarLer 1he absoluLe polnLs are
calculaLed based on closlng level of lndex on Lhe lasL day of Lhe Lradlng ln a
quarLer
and rounded off Lo Lhe nearesL 10 polnLs ln case of S Cnx nlfLy
rlce 8ands
ually prlce bands are appllcable on securlLles as below
(a) ually prlce bands of 2 (elLher way) on securlLles as speclfled by Lhe
Lxchange
(b) ually prlce bands of 3 (elLher way) on securlLles as speclfled by Lhe
Lxchange83
( c ) ually prlce bands of 10 (elLher way) on securlLles as speclfled by Lhe
Lxchange
(d) no prlce bands are appllcable on scrlps on whlch derlvaLlve producLs are
avallable or scrlps lncluded ln lndlces on whlch derlvaLlve producLs are
avallable ln order Lo prevenL members from enLerlng orders aL nongenulne prlces
ln such securlLles Lhe Lxchange has flxed operaLlng range
of 20 for such securlLles
(e) rlce bands of 20 (elLher way) on all remalnlng scrlps (lncludlng
debenLures preference shares eLc)
1he prlce bands for Lhe securlLles ln Lhe LlmlLed hyslcal MarkeL are Lhe same as
Lhose appllcable for Lhe securlLles ln Lhe normal MarkeL lor aucLlon markeL Lhe
prlce bands of 20 are appllcable
Crder 1ypes and CondlLlons
1he sysLem allows Lhe Lradlng members Lo enLer orders wlLh varlous condlLlons
aLLached Lo Lhem as per Lhelr requlremenLs 1hese condlLlons are broadly dlvlded
lnLo 1lme CondlLlons CuanLlLy CondlLlons rlce CondlLlons and CLher CondlLlons
Several comblnaLlons of Lhe above are allowed Lhereby provldlng enormous
flexlblllLy
Lo Lhe users 1he order Lypes and condlLlons are summarlsed below
(l) 1lme CondlLlons
(a) uA? All orders enLered lnLo Lhe sysLem are currenLly consldered as
uay orders only
(b) lCC An lmmedlaLe or Cancel (lCC) order allows Lhe user Lo buy or sell
a securlLy as soon as Lhe order ls released lnLo Lhe sysLem falllng
whlch Lhe order ls cancelled from Lhe sysLem arLlal maLch ls posslble
for Lhe order and Lhe unmaLched porLlon of Lhe order ls cancelled
lmmedlaLely
(ll) CuanLlLy CondlLlons
uC An order wlLh a ulsclosed CuanLlLy (uC) allows Lhe user Lo dlsclose
only a porLlon of Lhe order quanLlLy Lo Lhe markeL lor eg lf Lhe order
quanLlLy ls 10000 and Lhe dlsclosed quanLlLy ls 2000 Lhen only 2000
ls released Lo Lhe markeL AfLer Lhls quanLlLy ls fully maLched a
subsequenL quanLlLy of 2000 ls dlsclosed 1hus LoLally flve dlsclosures
wlLh Lhe same order number are shown one afLer Lhe oLher ln Lhe
markeL
(lll) rlce CondlLlons
(a) MarkeL MarkeL orders are orders for whlch prlce ls speclfled as Mk1
aL Lhe Llme Lhe order ls enLered lor such orders Lhe sysLem
deLermlnes Lhe prlce
(b) SLopLoss 1hls faclllLy allows Lhe user Lo release an order lnLo Lhe
sysLem afLer Lhe markeL prlce of Lhe securlLy reaches or crosses a
Lhreshold prlce called Lrlgger prlce
Lxample lf for sLop loss buy order Lhe Lrlgger ls 8s9300 Lhe llmlL
prlce ls 8s9300 and Lhe markeL (lasL Lraded) prlce ls 8s9000 Lhen
Lhls order ls released lnLo Lhe sysLem once Lhe markeL prlce reaches or 86
exceeds 8s9300 1hls order ls added Lo Lhe regular loL book wlLh Llme
of Lrlggerlng as Lhe Llme sLamp as a llmlL order of 8s9300
All sLop loss orders are kepL ln a separaLe book (sLop loss book) ln Lhe
sysLem unLll Lhey are Lrlggered
( c ) 1rlgger rlce rlce aL whlch an order geLs Lrlggered from Lhe sLop
loss book
(d) LlmlL rlce rlce of Lhe orders afLer Lrlggerlng from sLop loss book
(v)CLher CondlLlons
(a) roprleLary (8C) / CllenL (CLl) A user can enLer orders on hls
own accounL or on behalf of cllenLs 8y defaulL Lhe sysLem assumes
LhaL Lhe user ls enLerlng orders on Lhe Lradlng member's own accounL
1he cllenL accounL fleld ls an alphanumerlc fleld lL ls mandaLory Lo
enLer Lhe cllenL accounL number ln Lhe fleld provlded ln case Lhe user
enLers orders on behalf of cllenLs 1he sysLem wlll asslgn a code 'Cll' Lo
such an order 1he user cannoL speclfy Lhe Lradlng member code ln Lhe
cllenL accounL fleld
(b) arLlclpanL Code ln case of ro" order by defaulL Lhe sysLem
dlsplays Lhe Lradlng member lu of Lhe user ln Lhe parLlclpanL fleld ln
case of Cll order lf arLlclpanL lu" exlsL ln cllenL masLer malnLenance
Lhe same wlll appear ln parLlclpanL flled else Lradlng member lu wlll be
reflecLed Cnly a valld parLlclpanL code can be enLered ln case Lhe
parLlclpanL ls suspended a message Lo Lhls effecL ls dlsplayed Lo Lhe
user on Lhe order enLry screen
3112 Crder ModlflcaLlon
All orders can be modlfled ln Lhe sysLem Llll Lhe Llme Lhey do noL geL fully Lraded
and
only durlng markeL hours Cnce an order ls modlfled Lhe branch order value llmlL
for
Lhe branch geLs ad[usLed auLomaLlcally lollowlng ls Lhe corporaLe hlerarchy for
performlng order modlflcaLlon funcLlonallLy
(a) A dealer can modlfy only Lhe orders enLered by hlm
(b) A branch manager can modlfy hls own orders or orders of any dealer
under hls branch
( c ) A corporaLe manager can modlfy hls own orders or orders of all dealers
and branch managers of Lhe Lradlng member flrm
1he corporaLe manager/branch manager however cannoL modlfy order deLalls
such
LhaL lL exceeds Lhe branch order value llmlL seL for Lhe day Crder modlflcaLlon
cannoL be performed by/for a Lradlng member who ls suspended or deacLlvaLed
by
Lhe Lxchange for any reason
3113 Crder CancellaLlon
Crder cancellaLlon funcLlonallLy can be performed only for orders whlch have noL
been fully or parLlally Lraded (for Lhe unLraded parL of parLlally Lraded orders
only)
and only durlng markeL hours and ln preopen perlod
Slngle Crder CancellaLlon
Slngle order cancellaLlon can be done durlng Lradlng hours elLher by selecLlng Lhe
order from Lhe ouLsLandlng order screen or from Lhe funcLlon key provlded Crder
87
cancellaLlon funcLlonallLy ls avallable for all book Lypes 8uL Lhe user ls noL
allowed Lo cancel aucLlon lnlLlaLlon and compeLlLor orders ln aucLlon markeL
Culck Crder CancellaLlon
Culck Crder CancellaLlon (Cancel All) ls an exLenslon of Slngle Crder CancellaLlon
enabllng a user Lo cancel mulLlple ouLsLandlng orders ln varlous Lradlng books
sub[ecL Lo Lhe corporaLe hlerarchy 1he dlfferenL fllLers avallable for cancelllng
orders by uslng qulck order cancellaLlon faclllLy are symbol serles book Lype
branch user 8C/CLl cllenL accounL number and buy/sell Culck order
cancellaLlon can be performed by lnvoklng Lhe funcLlon key provlded and cannoL
be done from Lhe ouLsLandlng orders screen lf Lhe crlLerlon ls noL found Lo be
correcL by a Lradlng member Lhen an error message ls dlsplayed and Lhe focus ls
seL on Lhe lncorrecL fleld Lo enable Lhe user Lo correcL lL lf Lhe selecLlon crlLerlon
ls correcL Lhen a message appears on Lhe qulck order cancellaLlon screen sLaLlng
Lhe number of buy and sell orders Lo be cancelled Culck order cancellaLlon can
be done only durlng markeL hours
Crder CancellaLlon for ulsabled Member
1he Lxchange suspends a member from Lradlng due Lo varlous reasons ln case a
member ls suspended from Lradlng by Lhe Lxchange all pendlng orders ln all
books of Lhe member are lmmedlaLely cancelled by Lhe sysLem A message
Crder number cancelled due Lo suspenslon" ls dlsplayed aL Lhe message
wlndow screen aL Lhe Lrader worksLaLlon lnqulry screens such as M8 MarkeL
WaLch and Lrader speclflc screens such as CuLsLandlng Crders AcLlvlLy Log eLc
geL updaLed accordlngly
3114 Crder MaLchlng
1he buy and sell orders are maLched on 8ook 1ype Symbol Serles CuanLlLy and
rlce
reopen MaLchlng rlorlLy
1he openlng prlce ls deLermlned based on Lhe prlnclple of demand supply
mechanlsm 1he equlllbrlum prlce ls Lhe prlce aL whlch Lhe maxlmum volume ls
execuLable ln case more Lhan one prlce meeLs Lhe sald crlLerla Lhe equlllbrlum
prlce
ls Lhe prlce aL whlch Lhere ls mlnlmum unmaLched order quanLlLy ln case more
Lhan
one prlce has same mlnlmum order unmaLched quanLlLy Lhe equlllbrlum prlce ls
Lhe
prlce closesL Lo Lhe prevlous day's closlng prlce ln case Lhe prevlous day's closlng
prlce ls Lhe mldvalue of palr of prlces whlch are closesL Lo lL Lhen Lhe prevlous
day's
closlng prlce lLself wlll be Laken as Lhe equlllbrlum prlce ln case of corporaLe
acLlon
prevlous day's closlng prlce ls ad[usLed Lo Lhe closlng prlce or Lhe base prlce 8oLh
llmlL and markeL orders are reckoned for compuLaLlon of equlllbrlum prlce 1he
equlllbrlum prlce deLermlned ln preopen sesslon ls consldered as open prlce for
Lhe
day ln case lf only markeL orders exlsLs boLh ln Lhe buy and sell slde Lhen order ls
maLched aL prevlous days close prlce or ad[usLed close prlce / base prlce revlous
day's close or ad[usLed close prlce / base prlce ls Lhe openlng prlce ln case lf no
prlce ls dlscovered ln preopen sesslon Lhe prlce of flrsL Lrade ln Lhe normal
markeL
ls Lhe open prlce
MaLchlng rlorlLy88
1he besL sell order ls Lhe order wlLh Lhe lowesL prlce and a besL buy order ls Lhe
order wlLh Lhe hlghesL prlce 1he unmaLched orders are queued ln Lhe sysLem by
Lhe
followlng prlorlLy
(a) 8y rlce A buy order wlLh a hlgher prlce geLs a hlgher prlorlLy and
slmllarly a sell order wlLh a lower prlce geLs a hlgher prlorlLy Lg
Conslder Lhe followlng buy orders
1) 100 shares [ 8s 33 aL Llme 930 am
2) 300 shares [ 8s 3303 aL Llme 943 am
1he second order prlce ls greaLer Lhan Lhe flrsL order prlce and
Lherefore ls Lhe besL buy order
(b) 8y 1lme lf Lhere ls more Lhan one order aL Lhe same prlce Lhe order
enLered earller geLs a hlgher prlorlLy Lg conslder Lhe followlng sell
orders
1) 200 shares [ 8s 7273 aL Llme 930 am
2) 300 shares [ 8s 7273 aL Llme 933 am
8oLh orders have Lhe same prlce buL Lhey were enLered ln Lhe sysLem
aL dlfferenL Llme 1he flrsL order was enLered before Lhe second order
and Lherefore ls Lhe besL sell order
As and when valld orders are enLered or recelved by Lhe sysLem Lhey are flrsL
numbered Llme sLamped and Lhen scanned for a poLenLlal maLch 1hls means
LhaL
each order has a dlsLlncLlve order number and a unlque Llme sLamp on lL lf a
maLch
ls noL found Lhen Lhe orders are sLored ln Lhe books as per Lhe prlce/Llme
prlorlLy
An acLlve buy order maLches wlLh Lhe besL passlve sell order lf Lhe prlce of Lhe
passlve sell order ls less Lhan or equal Lo Lhe prlce of Lhe acLlve buy order
Slmllarly
an acLlve sell order maLches wlLh Lhe besL passlve buy order lf Lhe prlce of Lhe
passlve buy order ls greaLer Lhan or equal Lo Lhe prlce of Lhe acLlve sell order
8egular LoL MaLchlng
lf Lhe comblned quanLlLy of one or more maLchlng orders on Lhe opposlLe slde
of Lhe regular loL book ls equal Lo or more Lhan Lhe quanLlLy of acLlve order
Lhe acLlve order ls compleLely Lraded
lf Lhe comblned quanLlLy of one or more maLchlng orders on Lhe opposlLe slde
of Lhe regular loL book ls equal Lo or less Lhan Lhe quanLlLy of acLlve order
Lhe acLlve order ls parLlally Lraded
lf afLer Lradlng any quanLlLy ls lefL unLraded Lhe order ls added Lo Lhe regular
loL book ln Lhe prlce/Llme prlorlLy
1he orders wlLh Lhe lCC aLLrlbuLe Lry Lo maLch maxlmum posslble quanLlLy
afLer Lhey are enLered Any remalnlng quanLlLy ls cancelled
1he orders wlLh uC aLLrlbuLe dlsclose only a parL of Lhe LoLal order quanLlLy Lo
Lhe markeL89
An acLlve order wlLh dlsclosed condlLlon Lrles Lo maxlmlse Lhe quanLlLy as
posslble regardless of Lhe dlsclosed quanLlLy le a slngle Lrade Lakes place for
a quanLlLy more Lhan Lhe dlsclosed quanLlLy
lf an acLlve order wlLh Lhe dlsclosed quanLlLy cannoL Lrade lLs LoLal quanLlLy lL ls
added Lo Lhe regular loL book ln Lhe prlce/Llme prlorlLy 1he dlsclosed order
quanLlLy
ls deLermlned as follows
a) lf Lhe remalnlng order quanLlLy ls less Lhan or equal Lo Lhe orlglnal
dlsclosed quanLlLy Lhe dlsclosed order quanLlLy ls seL as equal Lo
remalnlng order quanLlLy
b) lf Lhe remalnlng order quanLlLy ls more Lhan Lhe orlglnal dlsclosed
quanLlLy Lhe dlsclosed order quanLlLy ls seL Lo Lhe orlglnal dlsclosed
quanLlLy
Cnce an order wlLh Lhe dlsclosed quanLlLy has become a passlve order lL Lrades
only
ln unlLs of dlsclosed quanLlLy or less Powever lf Lhere ls no oLher compeLlng
order
wlLh Lhe same prlce a slngle Lrade of as much quanLlLy as posslble Lakes place
beLween Lhe Lwo orders
When Lhe enLlre dlsclosed order quanLlLy ls fully Lraded Lhe dlsclosed quanLlLy
geLs
replenlshed and Lhls conLlnues Llll Lhe enLlre order quanLlLy ls fully Lraded Lach
Llme
Lhe dlsclosed quanLlLy ls replenlshed Lhe order ls sLamped wlLh Lhe currenL
Lradlng
Llme and added Lo Lhe regular order book as fresh order
SLop Loss MaLchlng
All sLop loss orders enLered lnLo Lhe sysLem are sLored ln Lhe sLop loss book
1hese
orders can conLaln Lwo prlces
(a) 1rlgger rlce lL ls Lhe prlce aL whlch Lhe order geLs Lrlggered from
Lhe sLop loss book
(b) LlmlL rlce lL ls Lhe prlce for orders afLer Lhe orders geL Lrlggered
from Lhe sLop loss book lf Lhe llmlL prlce ls noL speclfled Lhe Lrlgger
prlce ls Laken as Lhe llmlL prlce for Lhe order 1he sLop loss orders are
prlorlLlsed ln Lhe sLop loss book wlLh Lhe mosL llkely order Lo Lrlgger
flrsL and Lhe leasL llkely Lo Lrlgger lasL 1he prlorlLy ls same as LhaL of
Lhe regular loL book
1he sLop loss condlLlon ls meL under Lhe followlng clrcumsLances
(a) Sell Crder A sell order ln Lhe sLop loss book geLs Lrlggered when Lhe
lasL Lraded prlce ln Lhe normal markeL reaches or falls below Lhe
Lrlgger prlce of Lhe order
(b) 8uy Crder A buy order ln Lhe sLop loss book geLs Lrlggered when Lhe
lasL Lraded prlce ln Lhe normal markeL reaches or exceeds Lhe Lrlgger
prlce of Lhe order
When a sLop loss order wlLh lCC condlLlon enLers Lhe sysLem Lhe order ls
released ln
Lhe markeL afLer lL ls Lrlggered Cnce Lrlggered Lhe order scans Lhe counLer order
book for a sulLable maLch Lo resulL ln a Lrade or else ls cancelled by Lhe sysLem
8L1uL81 Crder MaLchlng 90
1he rules for maLchlng Lhe 8L1uL81 orders are slmllar Lo Lhe 8egular LoL book
excepL LhaL 8L1uL81 order maLchlng Lakes place only for orders ln Lhe 8L1uL81
order book
Cdd LoL Crder MaLchlng
Cdd LoL maLchlng Lakes place only for orders ln Cdd LoL book 1here are no
parLlal
Lrades for an Cdd LoL order le each maLch ls an exacL maLch where Lhe quanLlLy
of
Lhe passlve order ls equal Lo LhaL of Lhe acLlve order
AucLlon MaLchlng
All aucLlon orders are enLered lnLo Lhe aucLlon order book 1he rules for maLchlng
of
aucLlons are slmllar Lo LhaL of Lhe regular loL book excepL for Lhe followlng polnLs
(a) AucLlon order maLchlng Lakes place aL Lhe end of Lhe sollclLor perlod
for Lhe aucLlon
(b) AucLlon maLchlng Lakes place only across orders belonglng Lo Lhe same
aucLlon
( c ) All aucLlon Lrades Lake place aL Lhe aucLlon prlce
valldaLlon Check
Whlle maLchlng orders Lhe sysLem performs Lhe valldaLlon check lf Lhe
parLlclpanL
of any of Lhe orders ls Suspended Lhe Lrade does noL go Lhrough
312 1rade ManagemenL
A Lrade ls an acLlvlLy ln whlch a buy and a sell order maLch wlLh each oLher
MaLchlng
of Lwo orders ls done auLomaLlcally by Lhe sysLem Whenever a Lrade Lakes place
Lhe sysLem sends a Lrade conflrmaLlon message Lo each of Lhe users lnvolved ln
Lhe
Lrade 1he Lrade conflrmaLlon sllp geLs prlnLed aL Lhe Lrader worksLaLlon of Lhe
user
wlLh a unlque Lrade number 1he sysLem also broadcasLs a message Lo Lhe enLlre
markeL Lhrough Lhe Llcker wlndow dlsplaylng Lhe deLalls of Lhe Lrade
1hls secLlon descrlbes LraderelaLed acLlvlLles llke vlewlng Lhe Lrades Lrade
cancellaLlon eLc 8efore Lhe Lrade ls effecLed Lhe sysLem performs checks wlLh
respecL Lo Lhe followlng parameLers
(a) 1he securlLy ln whlch Lhe Lrade ls Lo be effecLed ls noL suspended from
operaLlons
(b) 1radlng members lnvolved ln Lhe poLenLlal Lrade are noL suspended
from operaLlons
Cnce Lhe Lrade for an order enLered ls conflrmed by Lhe sysLem a message ls senL
Lo
Lhe Lrader worksLaLlon 1he sysLem generaLes a 1rade ConflrmaLlon Sllp LhaL ls
prlnLed on Lhe prlnLer of Lhe Lrader worksLaLlon
3121 1rade CancellaLlon
1he user can use Lrade cancellaLlon screen for cancelllng Lrades done durlng Lhe
day
lf Lhe user ls a corporaLe manager of a Lradlng member flrm he can requesL for
L rade cancellaLlon for Lhe Lrades of any dealer of Lhe Lradlng members flrm and lf
he 91
ls a branch manager of a branch Lhen he can requesL for Lrade cancellaLlon for
Lhe
Lrades for any dealer of Lhe branch of Lhe Lradlng member flrm
1he user can requesL for Lrade cancellaLlon elLher from Lhe prevlous Lrades screen
or
by uslng Lhe funcLlon key provlded ln Lhe worksLaLlon 1he Lrade cancellaLlon
requesL
ls senL Lo Lhe Lxchange for approval and message Lo LhaL effecL ls dlsplayed ln Lhe
message wlndow 1he counLerparLy Lo Lhe Lrade also recelves Lhe message 1he
counLerparLy Lhen has Lo make slmllar requesL on Lhe same Lradlng day Cnce
boLh
Lhe parLles Lo Lrade send Lhe Lrade cancellaLlon requesL Lhe Lxchange elLher
approves or re[ecLs lL 1he message Lo LhaL effecL ls dlsplayed ln Lhe message
wlndow
When a requesL for Lhe Lrade cancellaLlon ls approved by Lhe Lxchange Lhe
parLles
Lo Lrade recelve a sysLem message conflrmlng Lhe Lrade cancellaLlon and Lhe
Lrade
cancellaLlon sllp ls prlnLed aL Lhelr respecLlve Lrader worksLaLlons lf Lhe Lxchange
re[ecLs Lhe Lrade cancellaLlon requesL Lhe Lrade cancellaLlon re[ecLlon sllp ls
prlnLed
aL Lhelr respecLlve Lrader worksLaLlons lf counLer parLy Lo Lhe Lrade does noL
enLer a
Lrade cancellaLlon requesL Lhe Lxchange re[ecLs Lhe Lrade cancellaLlon requesL
313 AucLlon
AucLlons are lnlLlaLed by Lhe Lxchange on behalf of Lradlng members for
seLLlemenL
relaLed reasons 1he maln reasons are shorLages bad dellverles and ob[ecLlons
1here are Lhree Lypes of parLlclpanLs ln Lhe aucLlon markeL
(a) lnlLlaLor 1he parLy who lnlLlaLes Lhe aucLlon process ls called an
lnlLlaLor
(b) CompeLlLor 1he parLy who enLers on Lhe same slde as of Lhe lnlLlaLor
ls called a compeLlLor
( c ) SollclLor 1he parLy who enLers on Lhe opposlLe slde as of Lhe lnlLlaLor
ls called a sollclLor
1he Lradlng members can parLlclpaLe ln Lhe Lxchange lnlLlaLed aucLlons by
enLerlng
orders as a sollclLor eg lf Lhe Lxchange conducLs a buyln aucLlon Lhe Lradlng
members enLerlng sell orders are called sollclLors
When Lhe aucLlon sLarLs Lhe compeLlLor perlod for LhaL aucLlon also sLarLs
CompeLlLor perlod ls Lhe perlod durlng whlch compeLlLor order enLrles are
allowed
CompeLlLor orders are Lhe orders whlch compeLe wlLh Lhe lnlLlaLor's order le lf
Lhe
lnlLlaLor's order ls a buy order Lhen all Lhe buy orders for LhaL aucLlon oLher Lhan
Lhe
lnlLlaLor's order are compeLlLor orders lf Lhe lnlLlaLor order ls a sell order Lhen all
Lhe
sell orders for LhaL aucLlon oLher Lhan Lhe lnlLlaLors order are compeLlLor orders
AfLer
Lhe compeLlLor perlod ends Lhe sollclLor perlod for LhaL aucLlon sLarLs SollclLor
perlod ls Lhe perlod durlng whlch sollclLor order enLrles are allowed SollclLor
orders
are Lhe orders whlch are opposlLe Lo Lhe lnlLlaLor order le lf Lhe lnlLlaLor order ls
a
buy order Lhen all Lhe sell orders for LhaL aucLlon are sollclLor orders and lf Lhe
lnlLlaLor order ls a sell order Lhen all Lhe buy orders for LhaL aucLlon are sollclLor
orders
AfLer Lhe sollclLor perlod order maLchlng Lakes place 1he sysLem calculaLes
Lradlng
prlce for Lhe aucLlon and all posslble Lrades for Lhe aucLlon are generaLed aL Lhe
calculaLed Lradlng prlce AfLer Lhls Lhe aucLlon ls sald Lo be compleLe CompeLlLor
perlod and sollclLor perlod for any aucLlon are seL by Lhe Lxchange92
3131 LnLerlng AucLlon Crders
AucLlon order enLry allows Lhe user Lo enLer orders lnLo aucLlons LhaL are
currenLly
runnlng 1o vlew Lhe lnformaLlon abouL currenLly runnlng aucLlons 'AucLlon
lnqulry'
screen has Lo be lnvoked lurLher one can vlew ones own ouLsLandlng orders for
any aucLlon by lnvoklng 'CuLsLandlng Crder lnqulry' for aucLlon markeL All
aucLlon
orders are valld for Lhe Lradlng day only
1he user can do aucLlon order enLry by enLerlng 'Au' ln Lhe book Lype of Lhe order
enLry screen Symbol and Serles LhaL ls currenLly selecLed ln any of Lhe markeL
lnformaLlon wlndows (le MW) provldes Lhe defaulLs ln Lhe aucLlon order enLry
screen lf AucLlon CuLsLandlng Crders ls up for an aucLlon LhaL ls elLher ln a
compeLlLor or sollclLor perlod Lhen Lhe aucLlon number has Lo be enLered All
flelds
ln Lhe aucLlon order enLry screen excepL aucLlon number and seLLlemenL days are
same as normal markeL order enLry screen 1he screen also dlsplays compeLlLor
perlod and sollclLor perlod
1he defaulLs LhaL are provlded on Lhe aucLlon lnqulry screen are symbol serles
aucLlon number seLLlemenL days and quanLlLy (avallable for aucLlon) 1he user
can
edlL Lhe defaulL values lf requlred 1he flelds ln Lhe aucLlon order enLry screen
LhaL
has Lo be enLered are 8C/CLl selecLlon accounL number (noL mandaLory)
parLlclpanL and remarks
SollclLor perlod for an aucLlon sLarLs as soon as Lhe aucLlon sLarLs 1he duraLlon of
Lhe sollclLor perlod ls seL by Lhe Lxchange 1he sysLem accepLs Lhe sollclLor orders
ln
any currenLly runnlng aucLlon only lf Lhe sollclLor perlod for LhaL aucLlon ls ln
progress CurrenLly Lhe Lradlng members cannoL lnlLlaLe aucLlons ln any securlLy
1hey can only parLlclpaLe as sollclLors ln aucLlons lnlLlaLed by Lhe Lxchange ln
Lxchange lnlLlaLed aucLlons Lhe compeLlLor perlod ls seL Lo zero and Lherefore
only
sollclLor perlod ls avallable
(l) LnLerlng SollclLor Crder 1o enLer a sollclLor order aucLlon order enLry screen
has Lo be lnvoked and Lhe aucLlon number or symbol serles ln AuC no (aucLlon
number) fleld has Lo be enLered 1he AuC no and symbol serles comblnaLlon ls
valldaLed and lf an error ls encounLered Lhen an approprlaLe error message ls
dlsplayed ln Lhe message wlndow and Lhe focus ls seL on Lhe AuC no When Lhe
order deLalls are found Lo be correcL Lhe sysLem asslgns a unlque order number
Lo
Lhe order and sends an order conflrmaLlon message Lo Lhe Lrader worksLaLlon lf
Lhe
sollclLor perlod for LhaL aucLlon ls over Lhe order ls noL accepLed AucLlon number
for
each securlLy ls dlsplayed ln Lhe AucLlon lnqulry screen
(ll) valldaLlon of AucLlon Crders lollowlng valldaLlon checks are performed ln
addlLlon Lo Lhe rouLlne order enLry valldaLlon checks Lo verlfy lnlLlaLor orders
(a) lf Lhe aucLlon markeL ls noL open for Lradlng Lhe user ls noL allowed Lo
enLer an aucLlon order
(b) lf a Lradlng member or a parLlclpanL ls suspended Lhen no aucLlons
can be enLered for Lhe Lradlng member or for Lhe parLlclpanL
( c ) lf Lhe securlLy ls noL allowed Lo Lrade ln Lhe aucLlon markeL or lf Lhe
securlLy ls suspended Lhe orders for LhaL securlLy are noL allowed
(d) lf Lhe quanLlLy enLered exceeds Warnlng CuanLlLy ercenLage Lhe
sysLem asks Lhe user for conflrmaLlon of Lhe order
(e) Any order wlLh a prlce ouLslde Lhe uay Mln/Max range ls noL allowed 93
lollowlng valldaLlon checks are performed Lo verlfy Lhe compeLlLor and Lhe
sollclLor
orders
(a) lf a compeLlLor order ls enLered Lhen a check ls made lf Lhe aucLlon ln
whlch order enLry ls deslred ls ln Lhe compeLlLor perlod
(b) lf a sollclLor order ls enLered Lhen a check ls made lf Lhe aucLlon ln
whlch order enLry ls deslred ls elLher ln compeLlLor perlod or sollclLor
perlod
( c ) 1he 1radlng Member cannoL enLer order for a securlLy ln whlch lnlLlaLor
order ls enLered agalnsL hlm
(d) AucLlon order enLry ln aucLlons whlch are yeL ln a pendlng sLaLe or
whlch are cancelled ls prohlblLed
3132 AucLlon Crder ModlflcaLlon
1he user ls noL allowed Lo modlfy any aucLlon orders
3133 AucLlon Crder CancellaLlon
1he user can cancel any sollc lLor order placed by hlm ln any aucLlon provlded Lhe
sollclLor perlod for LhaL aucLlon ls noL over 1he order cancellaLlon procedure ls
slmllar Lo LhaL of normal markeL 1he user can also use qulck order cancellaLlon
key
Lo cancel hls ouLsLandlng aucLlon orders
3134 AucLlon Crder MaLchlng
When Lhe sollclLor perlod for an aucLlon ls over aucLlon order maLchlng sLarLs for
LhaL aucLlon uurlng Lhls process Lhe sysLem calculaLes Lhe Lradlng prlce for Lhe
aucLlon based on Lhe lnlLlaLor order and Lhe orders enLered durlng Lhe compeLlLor
and Lhe sollclLor perlod CurrenLly for Lxchange lnlLlaLed aucLlons Lhe maLchlng
Lakes place aL Lhe respecLlve sollclLor order prlces
Lxample
AucLlon ls held ln x?Z for 3000 shares 1he closlng prlce of x?Z on LhaL day was
8s
133 1he lasL Lraded prlce of x?Z on LhaL day was 8s 130 1he prlce of x?Z lasL
lrlday was 8s 131 1he prevlous day's close prlce of x?Z was 8s 160 WhaL ls Lhe
maxlmum allowable prlce aL whlch Lhe member can puL a sell order ln Lhe aucLlon
for
x?Z? (1he prlce band appllcable for aucLlon markeL ls +/ 20)
Maxlmum prlce appllcable ln aucLlonrevlous day's close prlce*(100+prlce band)

8s 160*120
8s 192
Mlnlmum prlce appllcable ln aucLlonrevlous day's close prlce*(100prlce
band)94
314 LlmlLed hyslcal MarkeL
ursuanL Lo Lhe dlrecLlve of SL8l Lo provlde an exlL rouLe for small lnvesLors
holdlng
physlcal shares ln securlLles mandaLed for compulsory demaLerlallsed seLLlemenL
Lhe
Lxchange has provlded a faclllLy for such Lradlng ln physlcal shares noL exceedlng
300 shares 1hls markeL segmenL ls referred Lo as LlmlLed hyslcal MarkeL (small
wlndow) 1he LlmlLed hyslcal MarkeL was lnLroduced on !une 7 1999
3141 SallenL leaLures of LlmlLed hyslcal MarkeL
(a) 1radlng ls conducLed ln Lhe Cdd LoL markeL (markeL Lype 'C') wlLh
8ook 1ype 'CL' and serles '81'
(b) Crder quanLlLles should noL exceed 300 shares
( c ) 1he base prlce and prlce bands appllcable ln Lhe LlmlLed hyslcal
MarkeL are same as Lhose appllcable for Lhe correspondlng normal
MarkeL on LhaL day
(d) 1radlng hours are Lhe same as LhaL of Lhe normal markeL
(e) SeLLlemenL for all Lrades ls done on a LradeforLrade basls and
dellvery obllgaLlons arlse ouL of each Lrade
(f) Crders geL maLched when boLh Lhe prlce and Lhe quanLlLy maLch ln Lhe
buy and sell order Crders wlLh Lhe same prlce and quanLlLy maLch on
Llme prlorlLy le orders whlch have come lnLo Lhe sysLem before wlll
geL maLched flrsL
(g) 1radlng Members are requlred Lo ensure LhaL shares are duly
reglsLered ln Lhe name of Lhe lnvesLor(s) before enLerlng orders on
Lhelr behalf on a Lrade daLe
313 8lock 1radlng Sesslon
1he Lxchange has lnLroduced a separaLe Lradlng sesslon for Lhe block Lrades from
november 14 2003 ln Lhls sesslon Lradlng ls conducLed ln Lhe Cdd LoL markeL
(markeL Lype 'C') wlLh 8ook 1ype 'CL' and serles '8L' lL ls a 33 mlnuLe markeL le
Lhe Lradlng wlndow shall normally remaln open from 913 hours Lo 930 hours
1here
ls no preopen and posL close ln Lhe block Lrade sesslon lor a block Lrade order
should be of a mlnlmum quanLlLy of 300000 shares or mlnlmum value of 8s 3
crore
whlch ever ls lower Crders geL maLched when boLh Lhe prlce and Lhe quanLlLy
maLch
for Lhe buy and sell order Crders wlLh Lhe same prlce and quanLlLy are maLched
on
Llme prlorlLy le orders whlch have come lnLo Lhe sysLem before wlll geL maLched
flrsL 1he securlLles base prlce alerL quanLlLy appllcable ln Lhe block Lrade sesslon
are same as Lhose appllcable for Lhe correspondlng normal MarkeL on LhaL day
As
per SL8l requlremenL member ls requlred Lo puL orders aL a prlce noL exceedlng
(+/) 1 from Lhe prevlous close prlce/rullng markeL prlce as appllcable of
normal
markeL Accordlngly every order prlc e ls valldaLed for (+/ ) 1 on Lhe rullng L1
ln
normal markeL and any order away from Lhls wlll be re[ecLed by Lhe sysLem
CurrenLly markeL order ls noL allowed for 8L serles Crder wlLh speclal Lerms such
as
SLop Loss ulsclosed CuanLlLy ls noL avallable ln Lhls sesslon93
316 8eLall uebL MarkeL (8uM)
1radlng ln Lhe 8eLall uebL MarkeL Lakes place ln Lhe same manner ln whlch Lhe
Lradlng Lakes place ln Lhe equlLles (CaplLal MarkeL) segmenL 1he 8L1uL81 MarkeL
faclllLy on Lhe nLA1 sysLem of CaplLal MarkeL SegmenL ls used for enLerlng
LransacLlons ln 8uM sesslon
3161 Members ellglble for Lradlng ln 8uM segmenL
1radlng members who are reglsLered members of nSL ln Lhe CaplLal MarkeL
segmenL
or Wholesale uebL MarkeL segmenL are allowed Lo Lrade ln 8eLall uebL MarkeL
(8uM)
sub[ecL Lo fulfllllng Lhe caplLal adequacy norms
3162 1radlng arameLers
1he Lradlng parameLers for 8uM segmenL are as below
lace value 8s 100/
ermlLLed LoL Slze 10
1lck Slze 8s 001
CperaLlng 8ange +/ 3
MkL 1ype lndlcaLor u (8L1uL81)
8ook 1ype 8u
3163 MarkeL 1lmlngs and MarkeL Polldays
1radlng ln 8uM segmenL Lakes place on all days of Lhe week excepL SaLurdays
and
Sundays and holldays declared by Lhe Lxchange ln advance 1he markeL Llmlngs
and
Lhe holldays on Lhe 8uM segmenL are Lhe same as Lhose on Lhe LqulLles segmenL
1he Lxchange however can close Lhe markeL on days oLher Lhan Lhe above
schedule
holldays or may open Lhe markeL on days orlglnally declared as holldays 1he
Lxchange may also exLend advance or reduce Lradlng hours when lL deems flL
and
necessary
3164 1radlng SysLem
1he 8L1uL81 MarkeL faclllLy on Lhe nLA1 sysLem of CaplLal MarkeL SegmenL ls
used
for enLerlng LransacLlons ln 8uM sesslon 1he Lradlng sysLem feaLures and user
navlgaLlon for 8L1uL81 MarkeL are descrlbed below lurLher deLalls are avallable
on
Lhe onllne help faclllLy of nLA1 sysLem
(a) SeLLlng up SecurlLles ln MarkeL WaLch lor seLLlng up securlLles ln
Lhe MarkeL WaLch screen Lhe user can enLer Lhe requlred deLalls ln
Symbol Serles and MarkeL 1ype flelds
(b) Crder LnLry 8uy/ Sell orders can be enLered ln 8L1uL81 MarkeL by
selecLlng '8u' ln Lhe 8ook 1ype fleld96
( c ) CuanLlLy Crder quanLlLy should be ln mulLlples of MarkeL LoL
CuanLlLy condlLlons such as Ml ACn and uC are noL allowed
(d) rlce Members can enLer elLher markeL orders or llmlL prlce orders
Crder prlce for llmlL prlce orders should be ln mulLlples of Llck slze
(e) 8C/CLl ln Lhe 8C/CLl fleld only '8C' and 'CLl' orders are
allowed
(f) 1lme CondlLlons Members can speclfy Llme condlLlons as 'uay' or
'lCC'
(g) arLlclpanL Code A valld arLlclpanL Code can be enLered ln Lhls
fleld CLher opLlons allowed are 'C' 'C' 'nCl1' lnS1 and Lhe Lradlng
member's own ld Crders ln book Lype n1 and SL are noL allowed
(h) Crder CancellaLlon / ModlflcaLlon Crder cancellaLlon and
modlflcaLlon ls allowed for orders enLered ln Lhe 8L1uL81 MarkeL
8oLh Slngle and Culck Crder CancellaLlon funcLlons are avallable Culck
CancellaLlon can also be done for all securlLles ln Lhe 8L1uL81 MarkeL
by selecLlng Lhe 8ook 1ype as '8u' and oLher parameLers as relevanL
(l) M8 Member can query order lnformaLlon for Lhe 8L1uL81 MarkeL ln
M8 by selecLlng '8L1uL81' as book Lype ln Lhe selecLlon screen
Crders are sLacked accordlng Lo prlce ln M8 1he hlgh low lasL Lrade
prlce percenLage change and average Lrade prlce flgures are
calculaLed wlLh respecL Lo Lrades ln 8L1uL81 MarkeL
([) MarkeL lnqulry SecurlLy sLaLlsLlcs for 8L1uL81 markeL can be
vlewed by selecLlng '8L1uL81' as markeL Lype
(k) CuLsLandlng Crders/AcLlvlLy log/ revlous 1rade CuLsLandlng
order/ AcLlvlLy log/ revlous 1rade lnformaLlon ln a parLlcular securlLy
can be vlewed for 8L1uL81 MarkeL by selecLlng Lhe book Lype
'8L1uL81' ln Lhe respecLlve selecLlon screens
(l) Crder and 1rade ConflrmaLlon Sllps 1he order conflrmaLlon sllp for
orders enLered ln 8L1uL81 MarkeL dlsplays '8u' as 8ook 1ype fleld
Slmllarly Lrade conflrmaLlon sllp generaLed for 8L1uL81 MarkeL Lrades
show 'u' ln Lhe MarkeL 1ype fleld
(m) neL oslL lon 1he neL oslLlon screen dlsplays consolldaLed sLaLlsLlcs
for all markeLs as well as separaLely for each markeL
(n) MarkeL MovemenL MarkeL MovemenL sLaLlsLlcs for a securlLy can be
vlewed by selecLlng markeL Lype as '8L1uL81'
(o) Cnllne 8ackup ln Lhe Cnllne 8ackup funcLlon a faclllLy ls provlded
Lo selecL order/Lrades based on markeL Lype AlLernaLely members
can Lake a backup for all markeLs by selecLlng 'All' ln Lhe MarkeL 1ype
fleld
(p) lull Message ulsplay ln lull Message ulsplay messages can be
fllLered on Symbol and Serles 1he opLlon Lo fllLer messages for a
markeL Lype ls presenLly noL avallable
(q) Cffllne Crder LnLry 1hls funcLlon ls avallable for 8L1uL81 MarkeL
1he sLrucLure for Lhe lnpuL flle ls glven ln Lhe onllne help
(r) 8ranch/user Crder value LlmlL 8ranch/user Crder LlmlL ls
appllcable for a parLlcular 8ranch/user for orders across all MarkeLs
(s) SecurlLles Crder CuanLlLy LlmlL SecurlLles Crder CuanLlLy LlmlL ls
appllcable for a parLlcular securlLy across all MarkeLs
(L) Crder LlmlLs Crder llmlLs seL by a user are appllcable for a slngle
order across all MarkeLs
(u) 1lcker SelecLlon A faclllLy ls provlded for fllLerlng securlLles ln Lhe
Llcker for 8L1uL81 markeL97
(v) 8eporLs 1rades reporL generaLed for members le 1rades uone
Crder Log and Cpen Crders reporL dlsplays records ln ascendlng order
of securlLy name WlLhln a securlLy records are dlsplayed by MarkeL
1ype
(w) 8hav Copy SecurlLy sLaLlsLlcs perLalnlng Lo 8L1uL81 MarkeL Lrades
are shown separaLely ln Lhe MarkeL SLaLlsLlcs reporL
3163 1radlng Cycle
1radlng ln 8eLall uebL MarkeL ls permlLLed under 8olllng SeLLlemenL where ln
each
Lradlng day ls consldered as a Lradlng perlod and Lrades execuLed durlng Lhe day
are
seLLled based on Lhe neL obllgaLlons for Lhe day SeLLlemenL ls on a 1+2 basls le
on
Lhe 2
nd
worklng day lor arrlvlng aL Lhe seLLlemenL day all lnLervenlng holldays
whlch lnclude bank holldays nSL holldays SaLurdays and Sundays are excluded
1yplcally Lrades Laklng place on Monday are seLLled on Wednesday 1uesdays
Lrades
seLLled on 1hursday and so on
317 1radlng lnformaLlon downloaded Lo Members
1he Lxchange downloads cerLaln Lradlng relaLed reporLs and flles Lo Lhe Lradlng
member on a regular basls lollowlng ls Lhe llsL of reporLs and flles downloaded
Lo
Lhe members
(l) Cnllne 8ackup 1he flles are 1radeLxL and CrderLxL or flle wlLh user deflned
name Member can Lake onllne backup of orders and Lrades for Lhe currenL
Lradlng
day only 1he backup can be Laken durlng markeL hours and Llll approxlmaLely 1
hour afLer Lhe markeL close Llme
(ll) 1rader messages ln lull message dlsplay lull message area conLalns
members own order and Lrade lnformaLlon across all securlLles lL ls avallable for
currenL Lradlng day only An opLlon Lo save as a LexL flle ls also provlded 1he
Lradlng
members are requlred Lo keep copy of full message area for a perlod as per nSL
regulaLlons 8efer Lo secLlon lull Message ulsplay screen
(lll) 8hav copy 8hav copy ls downloaded ln nsecmLdrreporLs dlrecLory on a
dally
basls lL ls downloaded Lwo Llmes afLer markeL close llrsL bhav copy (lnLerlm
bhav
copy) downloaded approxlmaLely 20 mlnuLes afLer Lhe markeL close Llme 1he
second
bhav copy (flnal bhav copy) downloaded 20 mlnuLes afLer Lhe posL close markeL
1he
lnLerlm bhav copy ls overwrlLLen by flnal bhav copy users are advlsed Lo check
for
message Lo Lhls effecL 1he flles downloaded are ddmmxxxxms and
ddmmxxxxmd
where xxxx ls Lhe user ld 1he ms exLenslon flle ls formaLLed LxL flle whereas Lhe
md
exLenslon flle has bhav copy records ln csv (comma separaLed value) formaL Cnly
Lhe lasL seven bhav copy flles are sLored ln Lhe reporLs dlrecLory When bhav copy
ls
broadcasL Lhe sysLem checks for Lhe number of bhav copy flles lf lL ls seven Lhe
sysLem deleLes Lhe earllesL recelved flle and sLores Lhe currenL day's flle
(lv) SecurlLy lnformaLlon 1he Lxchange downloads on a dally basls Lhe followlng
flles for Lhe members Lo updaLe Lhelr local daLabase for nLA1 fronL end 1hese
flles
are requlred Lo be unzlpped and uploaded ln Lhelr respecLlve Lradlng sofLware by
Lhe
members on a dally basls98
Sr llle name ConLenL
1 securlLyzlp securlLyLxL
2 parLlclpanLzlp parLlclpanLLxL
3 lreelloaLLxL lreelloaLLxL
(v) Clrculars Clrculars as and when lssued by nSL are avallable Lo members on
Lhe webslLe
(vl) Crder/1rade sllps 1he order/Lrade sllps are ConflrmaLlon/ModlflcaLlon/
CancellaLlon/8e[ecLlon sllps 1he Lrade and order sllps are generaLed onllne 1he
Lrade conflrmaLlon ls generaLed when a Lrade ls execuLed and order sllp when a
member places an order 1he opLlon aL Lhe supplemenLary menu 'rlnL 1rade and
Crder conflrmaLlon' should be seL 'Cn' Members can also Lake prlnL of
conflrmaLlon
sllps aL Lhe end of Lhe day from Lhe reprlnL opLlon ln Lhe supplemenLary menu
1he
Lradlng members are requlred Lo keep copy of Lhe Lrade conflrmaLlon sllp for a
perlod
as per nSL regulaLlons
(vll) 8eporLs Cnce Lhe markeL closes Lhe deLalls of Lradlng acLlvlLles done by Lhe
user are generaLed as Lrade reporLs 1hey are downloaded on Lhe worksLaLlon of
CorporaLe/8ranch manager uownloaded reporLs are sLored aL Lhe worksLaLlon as
well as senL Lo Lhe prlnLer 1hls allows Lhe user Lo reprlnL any reporL any Llme 1he
reporLs LhaL are avallable Lo Lhe Lradlng member are MarkeL SLaLlsLlcs and MarkeL
lndlces
(vlll) MarkeL SLaLlsLlcs 1he purpose of Lhls reporL ls Lo show Lhe markeL sLaLlsLlcs
of LhaL Lradlng day 1hls reporL glves deLalls relaLed Lo all Lhe securlLles Lraded on
LhaL day for all markeLs
(lx) MarkeL lndlces A separaLe MarkeL lndlces 8eporL ls also dlssemlnaLed Lo
members whlch conLalns deLalls regardlng Lhe Cpen Plgh Low Close revlous
Close and change over Lhe revlous Close of S Cnx nlfLy S Cnx uefLy
Cnx
nlfLy !unlor S Cnx300 Cnx Mldcap Cnx l1 8ank nlfLy Cnx 100 and nlfLy
Mldcap 30 Cnx 8ealLy Cnx MnC Cnx lMCC Cnx Lnergy Cnx lnfra Cnx
harma
Cnx Su 8ank Cnx SL and Cnx Servlce and lndla vlx
(x) 1rade verlflcaLlon A faclllLy Lo verlfy Lrades ls avallable on Lhe nSL webslLe
uslng Lhls faclllLy an lnvesLor who has recelved a conLracL noLe from a Lradlng
member of Lhe Lxchange can check wheLher Lhe Lrade has been execuLed on Lhe
Lxchange 1hls faclllLy ls avallable on Lhe nSL webslLe for Lhe CaplLal MarkeL
segmenL lC (uerlvaLlves) segmenL and 8eLall uebL MarkeL segmenL
318 lnLerneL 8roklng
SL8l CommlLLee approved Lhe use of lnLerneL as an Crder 8ouLlng SysLem (C8S)
for
communlcaLlng cllenLs orders Lo Lhe Lxchanges Lhrough brokers C8S enables
lnvesLors Lo place orders wlLh hls broker and have conLrol over Lhe lnformaLlon
and
quoLes and Lo hlL Lhe quoLe on an onllne basls Cnce Lhe broker's sysLem recelves
Lhe order lL checks Lhe auLhenLlclLy of Lhe cllenL elecLronlcally and Lhen rouLes
Lhe
order Lo Lhe approprlaLe Lxchange for execuLlon Cn execuLlon of Lhe order lL ls
conflrmed on real Llme basls lnvesLor recelves reporLs on margln requlremenL
paymenLs and dellvery obllgaLlons Lhrough Lhe sysLem Pls ledger and porLfollo
accounL geL updaLed onllne99
nSL was Lhe flrsL sLock exchange ln lndla Lo launch lnLerneL Lradlng ln early
lebruary
2000 lL provldes webbased access Lo lnvesLors Lo Lrade dlrecLly on Lhe Lxchange
1he orders orlglnaLlng from Lhe Cs of Lhe lnvesLors are rouLed Lhrough Lhe
lnLerneL
Lo Lhe Lradlng Lermlnals of Lhe deslgnaLed brokers wlLh whom Lhey are
connecLed
and furLher Lo Lhe Lxchange for Lrade execuLlon Soon afLer Lhese orders geL
maLched and resulL lnLo Lrades Lhe lnvesLors geL conflrmaLlon abouL Lhem on
Lhelr
Cs Lhrough Lhe same lnLerneL rouLe
319 ColocaLlon
1he Lerm ''colocaLlon/proxlmlLy hosLlng servlces'' means space power
LelecommunlcaLlons and oLher anclllary producLs and servlces made avallable Lo
markeL parLlclpanLs for Lhe purpose of enabllng Lhem Lo poslLlon Lhelr compuLer
sysLems/servers ln close proxlmlLy Lo Lhe LransacLlon execuLlon faclllLy (aL Lhe
Lxchange) Lxchanges lnLernaLlonally are lnLroduclng colocaLlon servlces Lo
supporL
hlgh frequency Lradlng uslng AlgorlLhmlc 1radlng (ALCC) and ulrecL MarkeL
Access
(uMA) ln keeplng wlLh Lhe global Lrends and malnLalnlng hlgh servlce excellence
nSL sLarLed colocaLlon faclllLy ln !an 2010 1he sLaLeofLhear L colocaLlon
faclllLy
aL nSL provldes one of Lhe mosL modern daLacenLer faclllLles
320 Wlreless AppllcaLlon roLocol (WA)
SL8l has also approved Lradlng Lhrough wlreless medlum on WA laLform nSL
l1
launched Lhe Wlreless AppllcaLlon roLocol (WA) ln november 2000 1hls
provldes
access Lo lLs order book Lhrough Lhe hand held devlces whlch use WA
Lechnology
1hls serves prlmarlly reLall lnvesLors who are moblle and wanL Lo Lrade from any
place when Lhe markeL prlces for sLocks aL Lhelr cholce are aLLracLlve Cnly SL8l
reglsLered members who have been granLed permlsslon by Lhe Lxchange for
provldlng lnLerneL based Lradlng servlces can lnLroduce Lhe servlce afLer obLalnlng
permlsslon from Lhe Lxchange100
CPA1L8 4 CLLA8lnC SL11LLMLn1 Anu 8lSk
MAnACLMLn1
41 lnLroducLlon
AfLer a Lrade ls execuLed lL needs Lo be seLLled 1he clearlng and seLLlemenL
mechanlsm ln lndlan securlLles markeL has wlLnessed slgnlflcanL changes and
several
lnnovaLlons durlng Lhe lasL decade 1hese lnclude use of Lhe sLaLeofarL
lnformaLlon
Lechnology emergence of clearlng corporaLlons Lo assume counLerparLy rlsk
shorLer
seLLlemenL cycle demaLerlallzaLlon elecLronlc Lransfer of securlLles and flne
Luned
rlsk managemenL sysLem
1lll !anuary 2002 Lhe sLock exchanges ln lndla were followlng a sysLem of accounL
perlod seLLlemenL for cash markeL LransacLlons An accounL perlod seLLlemenL ls a
seLLlemenL where Lhe Lrades perLalnlng Lo a perlod sLreLchlng over more Lhan one
day are seLLled lor example Lrades for Lhe perlod Monday Lo lrlday are seLLled
LogeLher 1he obllgaLlons for Lhe accounL perlod are seLLled on a neL basls
lnsLead of Lhe accounL perlod seLLlemenL 1+2 rolllng seLLlemenL was lnLroduced
for
all securlLles 8olllng seLLlemenL refers Lo Lhe seLLllng of Lrades aL a sLandard flxed
perlod of days afLer Lhe execuLlon occurred ln a rolllng seLLlemenL each Lradlng
da y
ls consldered as a Lradlng perlod and Lrades execuLed durlng Lhe day are seLLled
based on Lhe neL obllgaLlons for Lhe day
42 key Lermlnologles used ln Clearlng and SeLLlemenL rocess
ayln day ls Lhe day when Lhe Lradlng members/brokers are requlred Lo make
paymenL of funds or dellvery of securlLles Lo Lhe clearlng corporaLlon of Lhe
Lxchange
for all LransacLlons Lraded by or Lhrough Lhem ln Lhe respecLlve seLLlemenL
perlod
(a) SecurlLles ayln 1he process of dellverlng securlLles Lo Lhe
clearlng corporaLlon Lo effecL seLLlemenL of a sale LransacLlon
(b) lunds ayln 1he process of Lransfer of funds Lo Lhe clearlng
corporaLlon Lo pay for purchase LransacLlons
ayouL day ls Lhe day when Lhe clearlng corporaLlon of Lhe sLock exchange
Lransfers funds and securlLles Lo Lhe broker/Lradlng member who have recelvable
obllgaLlon
(a) SecurlLles ayouL 1he process of recelvlng securlLles from Lhe
clearlng corporaLlon Lo compleLe Lhe securlLles seLLlemenL of a
purchase LransacLlon
(b) lunds ayouL 1he process of Lransfers of funds from Lhe clearlng
corporaLlon Lo compleLe Lhe funds seLLlemenL of a sale LransacLlon101
43 1ransacLlon Cycle
llgure 41 1ransacLlon cycle
SLeps ln 1ransacLlon Cycle
(a) A person holdlng asseLs (securlLles/funds) elLher Lo meeL hls llquldlLy
needs or Lo reshuffle hls holdlngs ln response Lo changes ln hls
percepLlon abouL rlsk and reLurn of Lhe asseLs decldes Lo buy or sell
Lhe securlLles
(b) Pe selecLs a broker and lnsLrucLs hlm Lo place buy/sell order on an
exchange
( c ) 1he order ls converLed Lo a Lrade as soon as lL flnds a maLchlng
sell/buy order
(d) AL Lhe end of Lhe Lrade cycle Lhe Lrades are neLLed Lo deLermlne Lhe
obllgaLlons of Lhe Lradlng members Lo dellver securlLles/funds as per
seLLlemenL schedule
(e) 8uyer (seller) dellvers funds (securlLles) and recelves securlLles
(funds) and acqulres ownershlp of Lhe securlLles A securlLles
LransacLlon cycle ls presenLed ln llgure 41
Clearlng of
1rades
ueclslon Lo
1rade
SeLLlemenL
of 1rades
laclng Crder
1ransacLlon Cycle 1rade
LxecuLlon
lunds/
SecurlLles102
44 SeLLlemenL Agencles
1he roles of several enLlLles lnvolved ln Lhe process of clearlng and seLLllng Lhe
Lrades execuLed on Lxchanges are explalned below
(l) Clearlng CorporaLlon (nSCCL) 1he nSCCL ls responslble for posLLrade
acLlvlLles of a sLock exchange Clearlng and seLLlemenL of Lrades and rlsk
managemenL are lLs cenLral funcLlons lL clears all Lrades deLermlnes obllgaLlons
of
members arranges for payln of funds/securlLles recelves funds / securlLles
processes for shorLages ln funds/securlLles arranges for payouL of
funds/securlLles
Lo members guaranLees seLLlemenL and collecLs and malnLalns marglns /
collaLeral
base caplLal / oLher funds
(ll) Clearlng Members 1hey are responslble for seLLllng Lhelr obllgaLlons as
deLermlned by Lhe nSCCL 1hey have Lo make avallable funds and/or securlLles ln
Lhe deslgnaLed accounLs wlLh clearlng bank/deposlLory parLlclpanL as Lhe case
may
be Lo meeL Lhelr obllgaLlons on Lhe seLLlemenL day ln Lhe caplLal markeL
segmenL
all Lradlng members of Lhe Lxchange are requlred Lo become Lhe Clearlng
Member of
Lhe Clearlng CorporaLlon
(lll) CusLodlans A cusLodlan ls an enLlLy who ls responslble for safeguardlng Lhe
documenLary evldence of Lhe LlLle Lo properLy llke share cerLlflcaLes eLc 1he LlLle
Lo
Lhe cusLodlan's properLy remalns vesLed wlLh Lhe orlglnal holder or ln Lhelr
nomlnee(s) or cusLodlan LrusLee as Lhe case may be ln nSCCL cusLodlan ls a
clearlng member buL noL a Lradlng member 1he cusLodlan seLLles Lrades asslgned
by
Lradlng members 1he cusLodlan ls requlred Lo conflrm wheLher lL ls golng Lo
seLLle a
parLlcular Lrade or noL lf lL ls conflrmed Lhe nSCCL asslgns LhaL obllgaLlon Lo LhaL
cusLodlan and Lhe cusLodlan ls requlred Lo seLLle lL on Lhe seLLlemenL day lf Lhe
cusLodlan re[ecLs Lhe Lrade Lhe obllgaLlon ls asslgned back Lo Lhe Lradlng /
clearlng
member
(lv) Clearlng 8anks Clearlng banks are a key llnk beLween Lhe clearlng members
and nSCCL for funds seLLlemenL Lvery clearlng member ls requlred Lo open a
dedlcaLed seLLlemenL accounL wlLh one of Lhe clearlng banks 8ased on hls
obllgaLlon
as deLermlned Lhrough clearlng Lhe clearlng member makes funds avallable ln
Lhe
clearlng accounL for Lhe payln and recelves funds ln case of a payouL MulLlple
clearlng banks provlde advanLages of compeLlLlve forces faclllLaLe lnLroducLlon of
new producLs vlz worklng caplLal fundlng anywhere banklng faclllLles Lhe opLlon
Lo
members Lo seLLle funds Lhrough a bank whlch provldes Lhe maxlmum servlces
sulLable Lo Lhe member
luncLlons of Clearlng 8anks
1he clearlng banks are requlred Lo provlde Lhe followlng servlces as a slngle
wlndow
Lo all clearlng members of naLlonal SecurlLles Clearlng CorporaLlon LLd as also Lo
Lhe
clearlng corporaLlon
(a) 8ranch neLwork ln clLles LhaL cover bulk of Lhe Lradlng cum clearlng
members103
(b) Plgh level auLomaLlon lncludlng 8eal Llme gross seLLlemenL (81CS)
8
and elecLronlc funds Lransfer (Ll1) faclllLles
( c ) laclllLles llke (l) dedlcaLed branch faclllLles (ll) sofLware Lo lnLerface
wlLh Lhe clearlng corporaLlon (lll) access Lo accounLs lnformaLlon on a
real Llme basls
(d) valueadded servlces Lo members such as freeofcosL funds Lransfer
across cenLers eLc
(e) rovldlng worklng caplLal funds
(f) SLock lendlng faclllLles le lendlng of a securlLy by Lhe reglsLered
owner Lo an auLhorlzed Lhlrd parLy for a flxed or open perlod of Llme
for an agreed conslderaLlon secured by collaLeral 1he demand Lo
borrow securlLles comes malnly from markeL makers Lo cover shorL
poslLlons or Lake arblLrage opporLunlLles
(g) Servlces as ueposlLory arLlclpanLs (an agenL of Lhe deposlLory
Lhrough whlch lL lnLerfaces wlLh Lhe lnvesLor)
(h) CLher CaplLal MarkeL relaLed faclllLles
(l) All oLher banklng faclllLles llke lssulng bank guaranLees / credlL
faclllLles eLc
(v) ueposlLorles A deposlLory ls an enLlLy where Lhe securlLles of an lnvesLor are
held ln elecLronlc form 1he person who holds a demaL accounL ls a beneflclary
owner ln case of a [olnL accounL Lhe accounL holders are beneflclary holders of
LhaL
[olnL accounL ueposlLorles help ln Lhe seLLlemenL of Lhe demaLerlallsed
securlLles
Lach cusLodlan/clearlng member ls requlred Lo malnLaln a clearlng pool accounL
wlLh
Lhe deposlLorles Pe ls requlred Lo make avallable Lhe requlred securlLles ln Lhe
deslgnaLed accounL on seLLlemenL day 1he deposlLory runs an elecLronlc flle Lo
Lransfer Lhe securlLles from accounLs of Lhe cusLodlans/clearlng member Lo LhaL
of
nSCCL As per Lhe schedule of allocaLlon of securlLles deLermlned by Lhe nSCCL
Lhe
deposlLorles Lransfer Lhe securlLles on Lhe payouL day from Lhe accounL of Lhe
nSCCL Lo Lhose of members/cusLodlans
43 Clearlng and SeLLlemenL rocess
Whlle nSL provldes a plaLform for Lradlng Lo lLs Lradlng members Lhe naLlonal
SecurlLles Clearlng CorporaLlon LLd (nSCCL) deLermlnes Lhe funds/securlLles
obllgaLlons of Lhe Lradlng members and ensures LhaL Lradlng members meeL Lhelr
obllgaLlons nSCCL becomes Lhe legal counLerparLy Lo Lhe neL seLLlemenL
obllgaLlons
of every member 1hls prlnclple ls called `novaLlon and nSCCL ls obllgaLed Lo
meeL
all seLLlemenL obllgaLlons regardless of member defaulLs wlLhouL any dlscreLlon
Cnce a member falls on any obllgaLlons nSCCL lmmedlaLely cuLs off Lradlng and
lnlLlaLes recovery
431 Clearlng rocess
ueLermlnaLlon of CbllgaLlon nSCCL deLermlnes whaL counLerparLles owe and
whaL counLerparLles are due Lo recelve on Lhe seLLlemenL daLe 1he nSCCL

8
8eal 1lme Cross SeLLlemenL (81CS) ls Lhe concepL deslgned Lo achleve sound rlsk
managemenL ln Lhe seLLlemenL of lnLerbank paymenLs 1ransacLlons are seLLled
across
accounLs held aL Lhe CenLral 8ank on a conLlnuous gross basls where seLLlemenL ls
lmmedlaLe
flnal and lrrevocable104
lnLerposes lLself as a cenLral counLerparLy beLween Lhe counLerparLles Lo Lrades
and neLs Lhe poslLlons so LhaL a member has securlLy wlse neL obllgaLlon Lo
recelve or dellver a securlLy and has Lo elLher pay or recelve funds
AL Lhe end of each Lradlng day concluded or lockedln Lrades are recelved from
nSL by nSCCL nSCCL deLermlnes Lhe cumulaLlve obllgaLlons of each member
and elecLronlcally Lransfers Lhe daLa Lo Clearlng Members (CMs) 1hls lmplles LhaL
all Lrades concluded durlng a parLlcular Lradlng perlod are seLLled LogeLher A
mulLllaLeral neLLlng procedure ls adopLed Lo deLermlne Lhe neL seLLlemenL
obllgaLlons (dellvery / recelpL poslLlons) of CMs nSCCL Lhen allocaLes or asslgns
dellvery of securlLles lnLer se Lhe members Lo arrlve aL Lhe dellvery and recelpL
obllgaLlon of funds and securlLles by each member
432 SeLLlemenL rocess
1he seLLlemenL process beglns as soon as member's obllgaLlons are deLermlned
Lhrough Lhe clearlng process 1he clearlng banks and deposlLorles provlde Lhe
necessary lnLerface beLween Lhe cusLodlans/clearlng members (who clear for Lhe
Lradlng members or Lhelr own LransacLlons) for seLLlemenL of funds/securlLles
obllgaLlons of Lradlng members 1he clearlng corporaLlon provldes a ma[or llnk
beLween Lhe clearlng banks clearlng members and Lhe deposlLorles 1hls llnk
ensures acLual movemenL of funds and securlLles on Lhe prescrlbed payln and
payouL day 1he core processes lnvolved ln Lhe seLLlemenL process are
(l) ayln of lunds and SecurlLles 1he members brlng ln Lhelr funds/securlLles Lo
Lhe nSCCL 1hey make avallable requlred securlLles ln deslgnaLed accounLs wlLh
Lhe
deposlLorles by Lhe prescrlbed payln Llme 1he deposlLorles move Lhe securlLles
avallable ln Lhe accounLs of members Lo Lhe accounL of Lhe nSCCL Llkewls e
members wlLh funds obllgaLlons make avallable requlred funds ln Lhe deslgnaLed
accounLs wlLh clearlng banks by Lhe prescrlbed payln Llme 1he nSCCL sends
elecLronlc lnsLrucLlons Lo Lhe clearlng banks Lo deblL member's accounLs Lo Lhe
exLenL
of paymenL obllgaLlons 1he banks process Lhese lnsLrucLlons deblL accounLs of
members and credlL accounLs of Lhe nSCCL
(ll) ayouL of lunds and SecurlLles AfLer processlng for shorLages of
funds/securlLles and arranglng for movemenL of funds from surplus banks Lo
deflclL
banks Lhrough 88l clearlng Lhe nSCCL sends elecLronlc lnsLrucLlons Lo Lhe
deposlLorles/clearlng banks Lo release payouL of securlLles/funds 1he
deposlLorles
and clearlng banks deblL accounLs of nSCCL and credlL seLLlemenL accounLs of
members SeLLlemenL ls compleLe upon release of payouL of funds and securlLles
Lo
cusLodlans/members
SeLLlemenL ls deemed Lo be compleLe upon declaraLlon and release of payouL of
funds and securlLles LxcepLlons may arlse because of shorL dellvery of securlLles
by
CMs bad dellverles or company ob[ecLlons on Lhe payouL day (1he deLalled
explanaLlon of securlLles and funds seLLlemenL follows ln Lhe laLer secLlon)
nSCCL ldenLlfles shorL dellverles (dlscussed laLer) and conducLs a buylngln
aucLlon o n L h e day afLer Lhe payouL day Lhrough Lhe nSL Lradlng sysLem 1he
dellverlng CM ls deblLed by an amounL equlvalenL Lo Lhe securlLles noL dellvered
and
valued aL a valuaLlon prlce (Lhe closlng prlce as announced by nSL on Lhe day
prevlous Lo Lhe day of Lhe valuaLlon) lf Lhe buyln aucLlon prlce ls more Lhan Lhe
valuaLlon prlce Lhe CM ls requlred Lo make good Lhe dlfference All shorLages noL
103
boughLln are deemed closed ouL aL Lhe hlghesL prlce beLween Lhe flrsL day of Lhe
Lradlng perlod Llll Lhe day of squarlng off or closlng prlce on Lhe aucLlon day plus
20 whlchever ls hlgher 1hls amounL ls credlLed Lo Lhe recelvlng members
accounL
on Lhe aucLlon payouL day
1he seLLlemenL process for LransacLlons ln securlLles ln Lhe CM segmenL of nSL ls
presenLed ln Lhe llgure 42
llgure 42 SeLLlemenL rocess ln CM segmenL of nSL
LxplanaLlon
(1) 1rade deLalls from Lxchange Lo nSCCL (realLlme and end of day
Lrade flle)
(2) nSCCL noLlfles Lhe consummaLed Lrade deLalls Lo CMs/cusLodlans
who afflrm back 8ased on Lhe afflrmaLlon nSCCL applles
mulLllaLeral neLLlng and deLermlnes obllgaLlons
(3) uownload of obllgaLlon and payln advlce of funds/securlLles
(4) lnsLrucLlons Lo clearlng banks Lo make funds avallable by payln
Llme
(3) lnsLrucLlons Lo deposlLorles Lo make securlLles avallable by paylnLlme
(6) ayln of securlLles (nSCCL advlses deposlLory Lo deblL pool accounL
of cusLodlans/CMs and credlL lLs accounL and deposlLory does lL)
(7) ayln of funds (nSCCL advlses Clearlng 8anks Lo deblL accounL of
cusLodlans/CMs and credlL lLs accounL and clearlng bank does lL)
(8) ayouL of securlLles (nSCCL advlses deposlLory Lo credlL pool
accounL of cusLodlans/CMs and deblL lLs accounL and deposlLory does
lL)
(9) ayouL of funds (nSCCL advlses Clearlng 8anks Lo credlL accounL of
cusLodlans/CMs and deblL lLs accounL and clearlng bank does lL)
nSL
nSCCL
CusLodlans/CMs
ueposlLorles Clearlng 8anks
1
8
6 7
9
10
3
2 3
4
11106
(10) ueposlLory lnforms cusLodlans/CMs Lhrough us
(11) Clearlng 8anks lnform cusLodlans/CMs
433 SeLLlemenL Cycle
SeLLlemenL cycles for securlLles ln demaLerlallsed and physlcal mode ls explalned
below
SeLLlemenL Cycle lor uemaLerlallsed SecurlLles
(l) normal MarkeL 1he Lrades execuLed each Lradlng day are consldered as a
Lradlng
perlod and Lrades execuLed durlng Lhe day are seLLled based on Lhe neL
obllgaLlons
for Lhe day AL nSL Lrades ln rolllng seLLlemenL are seLLled on a 1+2 basls le on
Lhe
2
nd
worklng day 1yplcally Lrades Laklng place on Monday are seLLled on Wednesday
1uesdays Lrades seLLled on 1hursday and so on
A Labular represenLaLlon of Lhe seLLlemenL cycle for rolllng seLLlemenL ls glven
below
ln 1able 41
1able 41 SeLLlemenL Cycle normal MarkeL
AcLlvlLy uay
1radlng 8olllng SeLLlemenL 1radlng 1
Clearlng CusLodlal ConflrmaLlon 1+1 worklng days
uellvery CeneraLlon 1+1 worklng days
SeLLlemenL SecurlLles and lunds payln 1+2 worklng days
SecurlLles and lunds payouL 1+2 worklng days
valuaLlon of shorLages based on closlng prlces
(aL 1+1 closlng prlces)
1+2 worklng days
osL
SeLLlemenL
AucLlon 1 +2 worklng days
AucLlon seLLlemenL 1+3 worklng days
8ad uellvery 8eporLlng 1+4 worklng days
8ecLlfled bad dellvery payln and payouL 1+6 worklng days
8ebad dellvery reporLlng and plckup 1+8 worklng days
Close ouL of rebad dellvery and funds payln
payouL
1+9 worklng days
(ll) lnLer lnsLlLuLlonal ueals 1radlng ln Lhls markeL segmenL ls avallable for
lnsLlLuLlonal lnvesLors only ln order Lo ensure LhaL Lhe overall lll llmlLs are noL
vlolaLed selllng ln Lhls segmenL ls resLrlcLed Lo lll cllenLs 8uylng ls resLrlcLed Lo
lnsLlLuLlonal cllenLs Members are requlred Lo enLer Lhe cusLodlan parLlclpanL
code aL
Lhe Llme of order enLry and Lo ensure LhaL Lhe selllng/buylng resLrlcLlons are
sLrlcLly
adhered Lo A sale order enLered by Lradlng members on behalf of non lll cllenLs
or
a buy order enLered by Lradlng members on behalf of non lnsLlLuLlonal (lll ll
8anks MuLual lunds lnsurance Companles) cllenLs ls deemed Lo be lnvalld
1he
member enLerlng Lhe lnvalld order ls furLher llable for dlsclpllnary acLlon whlch
may
lnclude penalLles penal acLlon wlLhdrawal of Lradlng faclllLles suspenslon eLc
107
ueals execuLed ln Lhls segmenL are cleared on a 1+2 rolllng basls SeLLlemenL of all
LransacLlons ls compulsorlly ln demaL mode only
1he seLLlemenL cyc le for Lhls segmenL ls shown below ln 1able 42
1able 42 SeLLlemenL Cycle lnLer lnsLlLuLlonal ueals
AcLlvlLy uay
1radlng 8olllng SeLLlemenL 1radlng 1
Clearlng CusLodlal ConflrmaLlon 1+1 worklng days
uellvery CeneraLlon 1+1 worklng days
SeLLlemenL SecurlLles and lunds payln 1+2 worklng days
SecurlLles and lunds payouL 1+2 worklng days
valuaLlon of shorLages based on
closlng prlces
aL 1+1 closlng prlces
osL SeLLlemenL Close ouL 1+2 worklng days
SeLLlemenL Cycle lor hyslcal SecurlLles
LlmlLed hyslcal MarkeL lor llmlLed physlcal markeLs seLLlemenL for Lrades ls
done
on a LradeforLrade basls and dellvery obllgaLlons arlse ouL of each Lrade
SallenL feaLures of LlmlLed hyslcal MarkeL seLLlemenL are
(a) uellvery of shares ln sLreeL name and markeL dellvery (cllenLs holdlng
physlcal shares purchased from Lhe secondary markeL) ls LreaLed as bad
dellvery 1he shares sLandlng ln Lhe name of lndlvlduals/Pul only would
consLlLuLe good dellvery 1he selllng/dellverlng member musL necessarlly
be Lhe lnLroduclng member
(b) Any dellvery of shares whlch bears Lhe lasL Lransfer daLe on or afLer Lhe
lnLroducLlon of Lhe securlLy for Lradlng ln Lhe L markeL ls consLrued as
bad dellvery
( c ) Any dellvery ln excess of 300 shares ls marked as shorL and such
dellverles are compulsorlly closedouL
(d) ShorLages lf any are compulsorlly closedouL aL 20 over Lhe acLual
Lraded prlce unrecLlfled bad dellvery and rebad dellvery are
compulsorlly closedouL aL 20 over Lhe acLual Lraded prlce
(e) All dellverles are compulsorlly requlred Lo be aLLesLed by Lhe
lnLroduclng/ dellverlng member
(f) 1he buyer musL compulsorlly send Lhe securlLles for Lransfer and
demaLerlallsaLlon laLesL wlLhln 3 monLhs from Lhe daLe of payouL
(g) Company ob[ecLlons arlslng ouL of such Lradlng and seLLlemenL ln Lhls
markeL are reporLed ln Lhe same manner as ls currenLly belng done for
normal markeL segmenL SecurlLles however would be accepLed as
valld company ob[ecLlon only lf Lhe securlLles are lodged for Lransfer
wlLhln 3 monLhs from Lhe daLe of payouL108
1he seLLlemenL cycle for Lhls segmenL ls same as for Lhe rolllng seLLlemenL as
shown
ln 1able 43 below
1able 43 SeLLlemenL Cycle hyslcal SecurlLles
AcLlvlLy uay
1radlng 8olllng SeLLlemenL 1radlng 1
Clearlng CusLodlal ConflrmaLlon 1+1 worklng days
uellvery CeneraLlon 1+1 worklng days
SeLLlemenL SecurlLles and lunds payln 1+2 worklng days
SecurlLles and lunds payouL 1+2 worklng days
osL SeLLlemenL Asslgnlng of shorLages for close ouL 1 +2 worklng days
8eporLlng and plckup of bad dellvery 1+4 worklng days
Close ouL of shorLages 1 +4worklng days
8eplacemenL of bad dellvery 1+6 worklng days
8eporLlng of rebad and plckup 1+8 worklng days
Close ouL of rebad dellvery 1+9 worklng days
46 SecurlLles and lunds SeLLlemenL
SeLLlemenL ls done from Lwo aspecL SecurlLles seLLlemenL and lunds seLLlemenL
(llgure 43) 1hese are dlscussed below

llgure 43 1ypes of seLLlemenL
461 SecurlLles SeLLlemenL
(a) 1he securlLles obllgaLlons of members are downloaded Lo
members/cusLodlans by nSCCL afLer Lhe end of Lhe Lradlng day
(b) 1he members / cusLodlans dellver Lhe securlLles Lo Lhe clearlng
corporaLlon on Lhe payln day ln case of physlcal seLLlemenL and make
avallable Lhe requlred securlLles ln Lhe pool accounLs wlLh Lhe deposlLory
parLlclpanLs ln case of demaLerlallsed securlLles
( c ) Members are requlred Lo open accounLs wlLh deposlLory parLlclpanLs of
boLh Lhe deposlLorles nSuL and CuSL uellverlng members are requlred
Lo dellver all documenLs Lo Lhe clearlng corporaLlon (ln case of physlcal
seLLlemenL) beLween 930 am and 1030 am on Lhe seLLlemenL day
8ecelvlng members are alloLLed speclflc Llme sloLs on seLLlemenL day Lo
collecL Lhe documenLs from Lhe clearlng corporaLlon aL Mumbal ln case
of demaLerlallsed seLLlemenL Lhe members recelve Lhelr obllgaLlon by
SeLLlemenL
SecurlLles
SeLLlemenL
lunds
SeLLlemenL109
230 pm on 1 + 1 day 1he members need Lo arrange for Lhe securlLles
as per Lhelr obllgaLlons and glve lnsLrucLlons by 1030 am on Lhe payln
day
(d) ln case of nSuL Lhe members need Lo glve lnsLrucLlons Lo move Lhe
securlLles Lo Lhe seLLlemenL accounL of nSCCL whereas ln case of CuSL
payln ls done based on seLLlemenL lu Lhrough ln whlch members are
requlred Lo provlde separaLe balances for each seLLlemenL
(e) 1he members need Lo ensure LhaL Lhe seLLlemenL number and Lype are
correcLly enLered Lo avold any defaulLs
(f) ursuanL Lo SL8l dlrecLlve
9
nSCCL has lnLroduced a seLLlemenL sysLem
for dlrecL dellvery of securlLles Lo Lhe lnvesLors accounLs wlLh effecL from
Aprll 2 2001 1hls faclllLy ls known as ulrecL ayouL Lo lnvesLors whlch
ls explalned below
ulrecL ayouL Lo lnvesLors
nSCCL has lnLroduced Lhe faclllLy of dlrecL payouL (le dlrecL dellvery of securlLles)
Lo cllenLs accounL on boLh Lhe deposlLorles lL ascerLalns from each clearlng
member Lhe beneflclary accounL deLalls of Lhelr respecLlve cllenLs who are due Lo
recelve pay ouL of securlLles 8ased on Lhe lnformaLlon recelved from members
Lhe
clearlng corporaLlon sends payouL lnsLrucLlons Lo Lhe deposlLorles so LhaL Lhe
cllenL
recelves Lhe pay ouL of securlLles dlrecLly Lo Lhelr accounLs on Lhe payouL day
1he
cllenL recelves payouL Lo Lhe exLenL of lnsLrucLlons recelved from Lhe respecLlve
clearlng members 1o Lhe exLenL of lnsLrucLlon noL recelved Lhe securlLles are
credlLed Lo Lhe CM pool accounL of Lhe member lollowlng are Lhe sallenL
feaLures of
'ulrecL ayouL' Lo lnvesLors
(a) Clearlng members are requlred Lo provlde a flle Lo nSCCL for effecLlng
pay ouL Lo lnvesLors accounLs for a parLlcular seLLlemenL Lype
seLLlemenL number and dellvery Lype 1he flle ls Lo be provlded as per
Lhe sLrucLure speclfled by nSCCL
(b) 1he Llme llmlL for submlsslon of flles ls up Lo 930am on Lhe pay ouL
day
( c ) 1he flles are uploaded by nSCCL ln lLs sysLem and reLurned wlLh Lhe
lndlcaLlon of Lhe success/re[ecLlon of Lhe flle and Lhe records 1hls ls
purely a valldaLlon of Lhe correcLness of Lhe flle and record formaLs
(d) Clearlng members should provlde deLalls of beneflclary accounL of Lhe
cllenLs of Lhe Lradlng members ln any one of Lhe deposlLorles
(e) CredlL Lo Lhe accounLs of varlous consLlLuenLs (le cllenL accounL and
CM ool / CM Clearlng accounL) would be ln Lhe same order as
speclfled by Lhe clearlng member ln Lhe flle glven Lo nSCCL
(f) lf for any cllenL accounL record Lhe quanLlLy requesLed for dlrecL
payouL ls more Lhan Lhe balance avallable for pay ouL Lo Lhe clearlng
member ln LhaL deposlLory Lhe quanLlLy avallable ln LhaL deposlLory ls
dlrecLly credlLed Lo members seLLlemenL accounL ln LhaL deposlLory lf
Lhe member recelves enLlre shares ln nSuL Lhe same wlll be
Lransferred Lo members pool accounL ln nSuL
(g) ln Lhe followlng slLuaLlons Lhe pay ouL ls credlLed Lo CM ool /
Clearlng accounL of Lhe clearlng members

9
vlde lLs clrcular SMu8/ollcy/Clr03/2001 daLed lebruary 1 2001110
Where Lhe clearlng members fall Lo provlde Lhe deLalls of Lhe
beneflclary accounL or where Lhe credlL Lo Lhe beneflclary
accounLs of Lhe cllenLs fall or any accounL whaLsoever
1he remalnlng quanLlLy recelved from oLher deposlLory as pay
ouL ls credlLed Lo Lhe CM ool / Clearlng accounL of Lhe clearlng
member wlLh Lhe respecLlve deposlLorles
(h) lf Lhe members cllenL has noL pald Lhe dues Lo Lhe member for Lhe
sald securlLles or for any oLher reason Lhe member has valld
[usLlflcaLlon noL Lo release Lhe payouL of a cllenL dlrecL ln such a
slLuaLlon Lhe member may noL be glvlng Lhe beneflclary accounL deLalls
of such cllenLs ln Lhe flle ln case Lhe lnvesLor has pald Lhe dues for
dellvery of securlLles and Lhere ls no valld [usLlflcaLlon for noL releaslng
payouL dlrecLly Lo Lhe cllenL Lhe member has Lo provlde Lhe deLalls of
lLs cllenLs beneflclary accounL so LhaL dlrecL credlL can be glven Lo Lhe
cllenL
roblems perLalnlng Lo SecurlLles SeLLlemenL
8roadly Lhere exlsL Lhree Lypes of seLLlemenL problems perLalnlng Lo securlLles
seLLlemenL
(l) ShorL uellverles A shorL dellvery/falled dellvery Lakes place when a broker a
cusLodlan or Lhe clearlng corporaLlon dellvers fewer securlLles Lhan whaL were
conLracLed for elLher Lo anoLher broker a cusLodlan or Lhe clearlng corporaLlon
Cn
Lhe securlLles payln day clearlng member communlcaLe Lo Lhe clearlng
corporaLlon
abouL Lhe securlLles LhaL he wlll be able Lo dellver and Lhose securlLles whlch he
wlll
noL be able Lo dellver Also lnforms an amounL equlvalenL Lo Lhe securlLles noL
dellvered by hlm valued aL Lhe valuaLlon prlce (Lhe closlng prlce on Lhe day
prevlous
Lo Lhe day of valuaLlon) 1hls ls called valuaLlon deblL A valuaLlon deblL ls also
conducLed for bad dellvery by clearlng members 1hls problem can arlse ln case
of
boLh physlcal and demaLerlallzed seLLlemenL (valuaLlon deblL ls explalned ln Lhe
laLer secLlon)
(ll) 8ad uellverles 8ad dellverles (dellverles whlch are prlma facle defecLlve) are
requlred Lo be reporLed Lo Lhe clearlng corporaLlon wlLhln Lwo days from Lhe
recelpL
of documenLs 1he dellverlng member ls requlred Lo recLlfy Lhese wlLhln Lwo days
unrecLlfled bad dellverles are asslgned Lo aucLlon on Lhe nexL day 1hls problem
can
arlse only ln case of physlcal seLLlemenL
(lll) Company Cb[ecLlons Company ob[ecLlons arlse when documenLs for
securlLles Lransfer are reLurned due Lo slgnaLure mlsmaLch or for any oLher
reason
1he orlglnal selllng CM ls normally responslble for recLlfylng/replaclng defecLlve
documenLs Lo Lhe recelvlng CM as per prenoLlfled schedule 1he CM on whom
company ob[ecLlon ls lodged has an opporLunlLy Lo wlLhdraw Lhe ob[ecLlon lf Lhe
ob[ecLlon ls noL valld or Lhe documenLs are lncompleLe (le noL as requlred under
Culdellne no100 or 109 of SL8l Cood/8ad dellvery guldellnes) wlLhln 7 days of
lodglng Lhe complalnL agalnsL hlm lf Lhe CM ls unable Lo recLlfy/replace defecLlve
documenLs on or before 21 days nSCCL conducLs a buylngln aucLlon for Lhe
nonrecLlfled parL of defecLlve documenL on Lhe nexL aucLlon day Lhrough Lhe
Lradlng
sysLem of nSL All ob[ecLlons whlch are noL boughLln are deemed closed ouL on
Lhe aucLlon day aL Lhe closlng prlce on Lhe aucLlon day plus 20 1hls amounL ls
credlLed Lo Lhe recelvlng members accounL on Lhe aucLlon payouL day
111
462 lunds SeLLlemenL
CurrenLly nSCCL (Lhe clearlng corporaLlon) offers seLLlemenL of funds Lhrough
Lhe
clearlng banks appolnLed by lL Lvery clearlng member ls requlred Lo malnLaln
and
operaLe a clearlng accounL wlLh any one of Lhe empanelled clearlng banks aL Lhe
deslgnaLed clearlng bank branches 1he clearlng accounL ls Lo be used excluslvely
for
clearlng seLLlemenL operaLlons
Clearlng AccounL
Lvery clearlng member ls requlred Lo malnLaln and operaLe a clearlng accounL
wlLh
any one of Lhe empanelled clearlng banks aL Lhe deslgnaLed clearlng bank
branches
1he clearlng accounL ls Lo be used excluslvely for clearlng operaLlons le for
seLLllng
funds and oLher obllgaLlons Lo Lhe clearlng corporaLlon lncludlng paymenLs of
marglns and penal charges Clearlng members are requlred Lo auLhorlse Lhe
clearlng
bank Lo access Lhelr clearlng accounL for deblLlng and credlLlng Lhelr accounLs
reporLlng of balances and oLher lnformaLlon as may be requlred by nSCCL from
Llme
Lo Llme as per Lhe speclfled formaL 1he clearlng bank wlll deblL/ credlL Lhe
clearlng
accounL of clearlng members as per lnsLrucLlons recelved from Lhe clearlng
corporaLlon A clearlng member can deposlL funds lnLo Lhls accounL ln any form
buL
can wlLhdraw funds from Lhls accounL only ln selfname
Change ln Clearlng 8ank
ln case a clearlng member wlshes Lo shlfL a clearlng accounL from one
deslgnaLed
clearlng bank Lo anoLher Lhe procedure ls as follows
(a) 1he CM clearlng member whlle requesLlng Lhe clearlng corporaLlon for
a change ln Lhe clearlng bank accounL should elLher
(l) lurnlsh Lhe no ob[ecLlon cerLlflcaLe (nCC) recelved by Lhe member
from Lhe exlsLlng clearlng bank for shlfLlng of accounL or
(ll) ln case no response was recelved by Lhe clearlng member from Lhe
exlsLlng clearlng bank ln respecL of Lhe nCC requesL even afLer a
mlnlmum walLlng perlod of a forLnlghL a declaraLlon Lo Lhe above
effecL along wlLh an acknowledged copy of Lhe nCC requesL made
by Lhe member Lo Lhe exlsLlng clearlng bank
(b) 1he clearlng corporaLlon would Lhereon lssue a leLLer of lnLroducLlon Lo
Lhe oLher deslgnaLed clearlng bank
(c) Cn openlng Lhe accounL wlLh Lhe oLher deslgnaLed clearlng bank Lhe
clearlng member should submlL Lo Lhe clearlng corporaLlon Lhe
accounL parLlculars lssued by Lhe bank and also Lhe acknowledged
copy of Lhe leLLer lssued by Lhe clearlng member Lo Lhe clearlng bank
(d) 1he clearlng corporaLlon should Lhereon communlcaLe Lhe daLe from
whlch Lhe new clearlng accounL wlll be operaLlonal and also Lhe daLe
afLer whlch Lhe exlsLlng clearlng accounL may be closed by Lhe clearlng
member
SeLLlemenL of lunds
(a) Members are lnformed of Lhelr funds obllgaLlon for varlous seLLlemenLs
Lhrough Lhe dally clearlng daLa download 1he dally funds sLaLemenL 112
glves daLewlse deLalls of each deblL/ credlL LransacLlon ln Lhe
member's clearlng accounL whereas Lhe summary sLaLemenL
summarlses Lhe same lnformaLlon for a qulck reference
(b) 1he member accounL may be deblLed for varlous Lypes of LransacLlons
on a dally basls 1he member ls requlred Lo ensure LhaL adequaLe
funds are avallable ln Lhe clearlng accounL Lowards all obllgaLlons on
Lhe scheduled daLe and Llme 1he member can refer Lo hls varlous
obllgaLlon sLaLemenLs and provlde for funds accordlngly
(c ) 1o ensure Llmely fulflllmenL of funds obllgaLlo ns members may avall of
Lhe faclllLy of sLandlng lnsLrucLlons Lo Lransfer Lhe requlslLe amounL
from some oLher accounL Lo Lhe clearlng accounL or a Lemporary
overdrafL faclllLy from Lhe bank ln case Lhe member has avalled such
a faclllLy Lhe member may furnlsh deLalls of hls obllgaLlon Lo Lhe bank
Lo ensure Llmely Lransfer of funds Lowards Lhe same Lo avold
lnconvenlence
(d) 1he member wlLh a funds payln obllgaLlon ls requlred Lo have clear
funds ln hls accounL on or before 1100 am on Lhe scheduled payln
day
(e) 1he payouL of funds ls credlLed Lo Lhe clearlng accounL of Lhe members
on or afLer 130 pm on Lhe scheduled payouL day
lunds shorLages
ln case Lhere ls a funds shorLage of a parLlcular speclflc value Lradlng ls noL
permlLLed and securlLles payouL ls wlLhheld as per Lhe norms ln place from Llme
Lo
Llme
enal Charges
enalLles are charged Lo members for
(a) lallure Lo fulflll Lhelr funds obllgaLlons
(b) lallure Lo fulflll Lhelr securlLles dellverable obllgaLlons
( c ) Cross Lxposure 1urnover vlolaLlons
(d) Margln ShorLages
(e) SecurlLy ueposlL ShorLages
(f) CLher vlolaLlons ln respecL of cllenL code modlflcaLlons nonconflrmaLlon of
cusLodlal Lrades company ob[ecLlons reporLed agalnsL
Lhe members eLc
47 ShorLages Pandllng
Cn Lhe securlLles payln day nSCCL ldenLlfles shorL dellverles and Lhe respecLlve
clearlng member ls deblLed by an amounL equlvalenL Lo Lhe securlLles noL
dellvered
by hlm and valued aL a valuaLlon prlce 1hls ls called a valuaLlon deblL A valuaLlon
deblL ls also conducLed for bad dellvery by clearlng members
nSCCL conducLs a buylngln aucLlon for securlLy shorLages on Lhe day afLer Lhe
payouL day Lhrough Lhe nSL Lradlng sysLem lf Lhe buyln aucLlon prlce ls more
Lhan Lhe
valuaLlon prlce Lhe member ls requlred Lo make good Lhe dlfference113
471 valuaLlon rlces
rlces aL whlch valuaLlon deblLs are conducLed called valuaLlon rlces and are
calculaLed as below
(l) valuaLlon rlce for fallure Lo dellver for 8egular MarkeL and LlmlLed
hyslcal MarkeL ueals 1he valuaLlon prlce for securlLles whlch were noL dellvered
on Lhe seLLlemenL day for securlLles ls Lhe closlng prlce of such securlLles on Lhe
lmmedlaLe Lradlng day precedlng Lhe payln day for Lhe securlLles
(ll) valuaLlon rlce for 8ad uellvery for 8egular MarkeL and Lhe LlmlLed
hyslcal MarkeL ueals 1he valuaLlon prlce for securlLles whlch consLlLuLe bad
dellverles ls Lhe closlng prlce of such securlLles on Lhe lmmedlaLe Lradlng day
precedlng Lhe bad dellvery recLlflcaLlon day for Lhe securlLles
472 CloseouL rocedures
All shorLages noL boughLln are deemed closed ouL aL Lhe hlghesL prlce beLween
Lhe
flrsL day of Lhe Lradlng perlod Llll Lhe day of squarlng off or closlng prlce on Lhe
aucLlon day plus 10/20 (as Lhe case may be) 1hls amounL ls credlLed Lo Lhe
recelvlng members accounL on Lhe aucLlon payouL day
1he close ouL procedure ls done ln Lhe followlng manner for dlfferenL markeLs
and
varles from case Lo case
(l) lor 8egular MarkeL
(a) ln Lhe case of fallure Lo glve dellvery AL Lhe hlghesL prlce
prevalllng ln Lhe nSL from Lhe flrsL day of Lhe relevanL Lradlng perlod
Llll Lhe day of closlng ouL or 20 above Lhe closlng prlce on Lhe
aucLlon day whlchever ls hlgher ln cases of securlLles havlng
corporaLe acLlons all cases of shorL dellvery of cum LransacLlons whlch
cannoL be aucLloned on cum basls or where Lhe cum basls aucLlon pay
ouL ls afLer Lhe book closure/record daLe would be compulsory closed
ouL lor compulsory close ouL Lhe followlng formula ls appllcable
(l) Plgher of 10 above Lhe closlng prlce of Lhe securlLy ln
normal MarkeL on Lhe aucLlon day
(ll) 1he hlghesL Lraded prlce from flrsL Lradlng day of Lhe
seLLlemenL Llll Lhe aucLlon day
(b) ln Lhe case of non recLlflcaLlon/replacemenL for bad dellvery
A L L h e hlghesL prlce prevalllng ln Lhe nSL from Lhe flrsL day of Lhe
relevanL Lradlng perlod Llll Lhe day of Lhe closlng ouL or 20 above Lhe
offlclal closlng prlce on Lhe aucLlon day whlchever ls hlgher
( c ) ln Lhe case of non recLlflcaLlon/replacemenL for ob[ecLlon
cases AL 20 above Lhe offlclal closlng prlce on Lhe aucLlon day
(ll) lor LlmlLed hyslcal MarkeL ueals
(a) ln Lhe case of fallure Lo glve dellvery AL 20 over Lhe acLual
Lrade prlce
(b) ln Lhe case of non recLlflcaLlon/replacemenL for bad dellvery
AL 10 over Lhe acLual Lrade prlce 114
( c ) ln Lhe case of non recLlflcaLlon/replacemenL for ob[ecLlon
cases AL 20 above Lhe offlclal closlng prlce ln regular markeL on Lhe
aucLlon day
(lll) AucLlon MarkeL
(a) ln Lhe case of aucLlon non dellvery When Lhe aucLlon seller falls Lo
dellver ln parL or full on aucLlon payln day Lhe deal ls squared up aL
Lhe hlghesL prlce prevalllng ln Lhe nSL from Lhe flrsL day of Lhe
relevanL Lradlng perlod Llll Lhe day of closlng ouL or 20 over Lhe
offlclal closlng prlce on Lhe close ouL day whlchever ls hlgher and ls
charged Lo Lhe aucLlon seller unless oLherwlse speclfled
(b) ln Lhe case of an aucLlon bad dellvery An aucLlon dellvery
reporLed as bad dellvery ls squared up aL Lhe hlghesL prlce prevalllng
ln Lhe nSL from Lhe flrsL day of Lhe relevanL Lradlng perlod Llll Lhe day
of closlng ouL or 10 over Lhe offlclal closlng prlce on Lhe close ouL
day whlchever ls hlgher and wlll be charged Lo Lhe aucLlon seller
unless oLherwlse speclfled
(lv) 8ecLlfled/8eplaced bad dellverles reporLed as bad dellvery (8ebad
dellvery)
(a) lor 8egular MarkeL ueals AL Lhe hlghesL prlce prevalllng ln Lhe nSL
from Lhe flrsL day of Lhe relevanL Lradlng perlod Llll Lhe day of Lhe
closlng ouL or 10 above Lhe offlclal closlng prlce on Lhe aucLlon day
whlchever ls hlgher
(b) lor LlmlLed hyslcal ueals 8ecLlfled / replaced shares reporLed as
bad dellvery (8ebad dellvery) ls squared up aL 10 over Lhe acLual
Lrade prlce
(v) Company ob[ecLlon cases reporLed as bad dellvery
8ecLlfled /replaced company ob[ecLlon reporLed as bad dellvery ls squared up aL
10
above Lhe offlclal closlng prlce on Lhe aucLlon day
(vl) C lose ouL prlce for deleLed securlLy
SecurlLy for whlch Lradlng has been dlsconLlnued on Lhe Lxchange (herelnafLer
referred Lo as deleLed securlLy) c lose ouL shall be Lhe lasL 26 weeks average
Lrade
prlce on Lhe exchange wlLh a close ouL mark up of 20
(vll) ueleLed securlLy on accounL of paymenL of addlLlonal call money
ln Lhe case of securlLles for whlch Lradlng has been dlsconLlnued on Lhe Lxchange
on
accounL of paymenL of addlLlonal call money (deleLed securlLy) Lhe securlLy
where
Lhe respecLlve call money has been pald (new securlLy) wlll be consldered Lo
arrlve aL
Lhe closlng prlce
Company ob[ecLlons recelved ln Lhe deleLed securlLy wlll be requlred Lo be
reporLed
ln Lhe new securlLy symbol / serles ln case Lhe new securlLy ls noL avallable for
Lhe reason of such securlLy noL belng lnLroduced for Lradlng on Lhe
Lxchange/Lradlng 113
belng dlsconLlnued on Lhe Lxchange company ob[ecLlons wlll be requlred Lo be
reporLed ln Lhe deleLed securlLy and closlng prlce for such deleLed securlLy wlll
be aL
20 over Lhe offlclal closlng prlce on Lhe lasL Lraded day of Lhe deleLed securlLy
on
Lhe Lxchange
(vlll) ueleLed securlLy on accounL of paymenL of redempLlon
ln Lhe case of securlLles for whlch Lradlng has been dlsconLlnued on Lhe Lxchange
on
accounL of redempLlon (deleLed securlLy) Lhe securlLy (wlLh Lhe new face value
afLer
redempLlon) lnLroduced for Lradlng by Lhe Lxchange (new securlLy) wlll be
consldered Lo arrlve aL Lhe closlng prlce
Company ob[ecLlons recelved ln Lhe deleLed securlLy wlll be requlred Lo be
reporLed
ln Lhe new securlLy symbol / serles and members wlll be enLlLled Lo clalm
redempLlon
amounL as corporaLe beneflL
ln case Lhe new securlLy ls noL avallable for Lhe reason of such securlLy noL belng
lnLroduced for Lradlng on Lhe Lxchange / Lradlng belng dlsconLlnued on Lhe
Lxchange
on accounL of full redempLlon company ob[ecLlons wlll be requlred Lo be
reporLed ln
L he deleLed securlLy and closlng prlce for such deleLed securlLy wlll be aL 20
over
Lhe offlclal closlng prlce on Lhe lasL Lraded day of Lhe deleLed securlLy on Lhe
Lxchange
(lx) ueleLed securlLy on accounL of merger / amalgamaLlon / hlve off /
scheme of resLrucLurlng
ln Lhe case of securlLles for whlch Lradlng has been dlsconLlnued on Lhe Lxchange
on
accounL of merger / amalgamaLlon/ scheme of resLrucLurlng (deleLed securlLy)
Lhe
securlLy wlLh whlch Lhe deleLed securlLy ls merged / amalgamaLed / hlved off /
resLrucLured lnLo (new securlLy) wlll be consldered Lo arrlve aL Lhe closlng prlce
Closlng prlce for such deleLed securlLy wlll be Lhe offlclal closlng prlce of Lhe new
securlLy on Lhe aucLlon day prevalenL on Lhe Lxchange ln case where Lhe prlce of
Lhe new securlLy ls noL avallable for Lhe reason of such securlLy noL belng Lraded
on
Lhe Lxchange Lhe closlng prlce for such deleLed securlLy wlll be aL 20 over Lhe
offlclal closlng prlce on Lhe lasL Lraded day of deleLed securlLy on Lhe Lxchange
ln
case where more Lhan one securlLy (addlLlonal securlLles) ls belng glven by Lhe
company ln lleu of Lhe deleLed securlLy Lhe clalm of company ob[ecLlon lodged
for
such deleLed securlLy shall be seLLled as follows
(a) lf such addlLlonal securlLles are Lraded on Lhe Lxchange ln Lhe raLlo
ln whlch Lhey have been lssued by Lhe company
(b) lf any one or more of Lhese addlLlonal securlLles are noL Lraded on
any SLock Lxchange no clalm shall arlse for such securlLy noL Lraded
(c) lf any one or more of Lhese addlLlonal securlLles are noL Lraded on Lhe
Lxchange buL Lraded on some oLher SLock Lxchanges Lhe relevanL
closlng prlce of such securlLles shall be Lhe closlng prlce on Lhe
8eglonal Lxchange Lo be noLlfled by nSCCL
(x) Close ouL prlce for bonds
(a) ln case of fallure Lo glve dellvery non recLlflcaLlon/replacemenL of bad
dellvery recLlfled/replaced bad dellvery subsequenLly reporLed as re116
bad aucLlon nondellvery and aucLlon dellvery reporLed as bad
dellvery closlng ouL prlce wlll be Lhe hlghesL raLe prevalllng on Lhe
Lxchange from Lhe flrsL day of Lhe relevanL Lradlng perlod Llll Lhe day
of closlng ouL or 3 over Lhe offlclal closlng prlce on Lhe aucLlon day
whlchever ls hlgher
(b) ln case of non recLlflcaLlon / replacemenL of company ob[ecLlon and
recLlfled/replaced company ob[ecLlons reporLed as bad dellvery closlng
prlce wlll be 3 over Lhe offlclal closlng prlce on Lhe aucLlon day
48 8lsks ln SeLLlemenL
1he followlng Lwo klnds of rlsks are lnherenL ln a seLLlemenL sysLem
(l) CounLerparLy 8lsk 1hls arlses lf parLles do noL dlscharge Lhelr obllgaLlons fully
when due or aL any Llme LhereafLer 1hls has Lwo componenLs namely
replacemenL
cosL rlsk prlor Lo seLLlemenL and prlnclpal rlsk durlng seLLlemenL
(a) 1he replacemenL cosL rlsk arlses from Lhe fallure of one of Lhe
parLles Lo LransacLlon Whlle Lhe nondefaulLlng parLy Lrles Lo replace
Lhe orlglnal LransacLlon aL currenL prlces he loses Lhe proflL LhaL has
accrued on Lhe LransacLlon beLween Lhe daLe of orlglnal LransacLlon
and daLe of replacemenL LransacLlon 1he seller/buyer of Lhe securlLy
loses Lhls unreallsed proflL lf Lhe currenL prlce ls below/above Lhe
LransacLlon prlce 8oLh parLles encounLer Lhls rlsk as prlces are
uncerLaln lL has been reduced by reduclng Llme gap beLween
LransacLlon and seLLlemenL and by legally blndlng neLLlng sysLems
(b) 1he prlnclpal rlsk arlses lf a parLy dlscharges hls obllgaLlons buL Lhe
counLerparLy defaulLs 1he seller/buyer of Lhe securlLy suffers Lhls rlsk
when he dellvers/makes paymenL buL does noL recelve
paymenL/dellvery 1hls rlsk can be ellmlnaLed by dellvery vs paymenL
mechanlsm whlch ensures dellvery only agalnsL paymenL 1hls has
been reduced by havlng a cenLral counLerparLy (nSCCL) whlch
becomes Lhe buyer Lo every seller and Lhe seller Lo every buyer A
varlanL of counLerparLy rlsk ls llquldlLy rlsk whlch arlses lf one of Lhe
parLles Lo LransacLlon does noL seLLle on Lhe seLLlemenL daLe buL laLer
1he seller/buyer who does noL recelve paymenL/dellvery when due
may have Lo borrow funds/securlLles Lo compleLe hls paymenL/dellvery
obllgaLlons AnoLher varlanL ls Lhe Lhlrd parLy rlsk whlch arlses lf Lhe
parLles Lo Lrade are permlLLed or requlred Lo use Lhe servlces of a Lhlrd
parLy whlch falls Lo perform lor example Lhe fallure of a clearlng
bank whlch helps ln paymenL can dlsrupL seLLlemenL 1hls rlsk ls
reduced by allowlng parLles Lo have accounLs wlLh mulLlple banks
Slmllarly Lhe users of cusLodlal servlces face rlsk lf Lhe concerned
cusLodlan becomes lnsolvenL acLs negllgenLly eLc
(ll) SysLem 8lsk 1hls comprlses of operaLlonal legal and sysLemlc rlsks 1he
operaLlonal rlsk arlses from posslble operaLlonal fallures such as errors fraud
ouLages eLc 1he legal rlsk arlses lf Lhe laws or regulaLlons do noL supporL
enforcemenL of seLLlemenL obllgaLlons or are uncerLaln SysLemlc rlsk arlses when
fallure of one of Lhe parLles Lo dlscharge hls obllgaLlons leads Lo fallure by oLher
117
parLles 1he domlno effecL of successlve fallures can cause a fallure of Lhe
seLLlemenL
sysLem
1hese rlsks have been conLalned by enforcemenL of an elaboraLe marglnlng and
caplLal adequacy sLandards Lo secure markeL lnLegrlLy seLLlemenL guaranLee
funds
Lo provlde counLerparLy guaranLee legal backlng for seLLlemenL acLlvlLles and
buslness conLlnulLy plan eLc
49 8lsk ManagemenL
A sound rlsk managemenL sysLem ls lnLegral Lo/prerequlslLe for an efflclenL
clearlng
and seLLlemenL sysLem 1he naLlonal SecurlLles Clearlng CorporaLlon LLd (nSCCL)
a
wholly owned subsldlary of nSL was lncorporaLed ln AugusL 1993 and
commenced
clearlng operaLlons ln Aprll 1996 nSCCL ensures LhaL Lradlng members'
obllgaLlons
are commensuraLe wlLh Lhelr neL worLh and has puL ln place a comprehenslve rlsk
managemenL sysLem whlch ls consLanLly monlLored and upgraded Lo preempL
markeL fallures 1he rlsk conLalnmenL measures are dlscussed below
491 CaplLal Adequacy 8equlremenLs
1he Lradlng members are requlred Lo provlde llquld asseLs whlch adequaLely
cover
varlous marglns mlnlmum caplLal requlremenLs Llquld asseLs of Lhe member
lnclude Lhelr lnlLlal membershlp deposlLs lncludlng Lhe securlLy deposlLs
Members
may provlde addlLlonal collaLeral deposlL Lowards llquld asseLs over and above
Lhelr
mlnlmum membershlp deposlL requlremenLs (see Lable 44)
1he accepLable forms of caplLal Lowards llquld asseLs and Lhe appllcable halrcuLs
are
llsLed below
(l) Cash LqulvalenLs C a s h bank flxed deposlLs wlLh approved cusLodlans
bank
guaranLees from approved banks and governmenL securlLles wlLh 10 halrcuL
unlLs
of llquld muLual funds or governmenL securlLles muLual funds wlLh 10 halrcuL
(ll) CLher Llquld asseLs
(a) Llquld (Croup l) LqulLy Shares ln demaL form as speclfled by nSCCL
from Llme Lo Llme deposlLed wlLh approved cusLodlans PalrcuLs
applled are equlvalenL Lo Lhe va8 margln for Lhe respecLlve securlLles
(b) MuLual fund unlLs oLher Lhan Lhose llsLed under cash equlvalenLs
declded by nSCCL from Llme Lo Llme PalrcuL equlvalenL Lo Lhe va8
margln for Lhe unlLs compuLed uslng Lhe Lraded prlce lf avallable or
else uslng Lhe nAv of Lhe unlL LreaLlng lL as a llquld securlLy118
1able 44 CaplLal Adequacy norms for Membershlp on nSL (8s ln lakh)

1 no addlLlonal neLworLh ls requlred for self clearlng members A neLworLh of
8s 300
Lakh however ls requlred for 1MCM and CM
2 3 AddlLlonal 8s 23 Lakh ls requlred for clearlng membershlps (SCM 1MCM)
ln
addlLlon Lhe clearlng member ls requlred Lo brlng ln llSu of 8s 2 Lakh and CSu of
8s 8 Lakh per Lradlng member he underLakes Lo clear and seLLle
(lll) AddlLlonal CaplLal Members may provlde addlLlonal margln/collaLeral deposlL
(addlLlonal caplLal) Lo nSCCL over and above Lhelr mlnlmum deposlL
requlremenLs
Lowards marglns and/ or oLher obllgaLlons Clearlng members can submlL such
deposlLs ln any one form or comblnaLlon of Lhe followlng forms
(a) Cash
(b) llxed deposlL recelpLs wlLh approved cusLodlans
( c ) 8ank guaranLee from approved banks
(d) Approved securlLles ln demaL form deposlLed wlLh approved
cusLodlans
492 Marglns
Marglns form a key parL of Lhe rlsk managemenL sysLem ln Lhe sLock markeLs
Lhere
ls always an uncerLalnLy ln Lhe movemenL of share prlces 1hls uncerLalnLy leads
Lo
rlsk whlch ls addressed by marglnlng sysLem of sLock markeLs LeL us undersLand
Lhe
concepL of marglns wlLh Lhe help of a followlng example
Lxample Suppose an lnvesLor purchases 1000 shares of 'xyz' company aL 8s100/
on !anuary 1 2008 lnvesLor has Lo glve Lhe purchase amounL of 8s100000/
(1000 x 100) Lo hls broker on or before !anuary 2 2008 8roker ln Lurn has Lo
glve
Lhls money Lo sLock exchange on !anuary 3 2008 1here ls always a small chance
LhaL Lhe lnvesLor may noL be able Lo brlng Lhe requlred money by requlred daLe
As
an advance for buylng Lhe shares lnvesLor ls requlred Lo pay a porLlon of Lhe
LoLal
amounL of 8s100000/ Lo Lhe broker aL Lhe Llme of placlng Lhe buy order SLock
exchange ln Lurn collecLs slmllar amounL from Lhe broker upon execuLlon of Lhe
order 1hls lnlLlal Loken paymenL ls called margln lL ls lmporLanL Lo remember
LhaL
for every buyer Lhere ls a seller and lf Lhe buyer does noL brlng Lhe money seller
may noL geL hls / her money and vlce versa 1herefore margln ls levled on Lhe
seller
also Lo ensure LhaL he/she glves Lhe 100 shares sold Lo Lhe broker who ln Lurn
glves
lL Lo Lhe sLock exchange
ln Lhe above example assume LhaL margln was 13 1haL ls lnvesLor has Lo glve
8s13000/(13 of 8s100000/) Lo Lhe broker before buylng now suppose LhaL
lnvesLor boughL Lhe shares aL 11 am on !anuary 1 2008 Assume LhaL by Lhe end
of
Lhe day prlce of Lhe share falls by 8s23/ 1haL ls LoLal value of Lhe shares has
come down Lo 8s73000/ 1haL ls buyer has suffered a noLlonal loss of
8s23000/
arLlculars CM and lC
segmenL
CM WuM and lC
segmenL
neL worLh
1
100 200
lnLeresL free securlLy deposlL (llSu)
2
123 273
CollaLeral securlLy deposlL (CSu)
3
23 23
Annual subscrlpLlon 1 2119
ln our example buyer has pald 8s13000/ as margln buL Lhe noLlonal loss
because
of fall ln prlce ls 8s23000/ 1haL ls noLlonal loss ls more Lhan Lhe margln glven
ln such a slLuaLlon Lhe buyer may noL wanL Lo pay 8s100000/ for Lhe shares
whose value has come down Lo 8s73000/ Slmllarly lf Lhe prlce has gone up by
8s23/ Lhe seller may noL wanL Lo glve Lhe shares aL 8s100000/ 1o ensure
LhaL
boLh buyers and sellers fulflll Lhelr obllgaLlons lrrespecLlve of prlce movemenLs
noLlonal losses are also need Lo be collecLed
rlces of shares keep on movlng every day Marglns ensure LhaL buyers brlng
money
and sellers brlng shares Lo compleLe Lhelr obllgaLlons even Lhough Lhe prlces have
moved down or up
lmposlLlon of Marglns
lor lmposlLlon of marglns Lhe sLocks are caLegorlzed on basls of Lhelr Lradlng
frequency and lmpacL cosL
1 0
(see Lable 43) 1he crlLerla for caLegorlzaLlon of sLocks
for lmposlLlon of marglns ls menLloned below
(a) 1he securlLles are classlfled lnLo Lhree groups based on Lhelr llquldlLy 1he
sLocks whlch have Lraded aLleasL 80 of Lhe days for Lhe prevlous slx
monLhs consLlLuLe Croup l (Llquld SecurlLles) and Croup ll (Less Llquld
SecurlLles) CuL of Lhe scrlps ldenLlfled above Lhe scrlps havlng mean
lmpacL cosL of less Lhan or equal Lo 1 are caLegorlzed under Croup l and
Lhe scrlps where Lhe lmpacL cosL ls more Lhan 1 are caLegorlzed under
Croup ll 1he remalnlng sLocks are classlfled lnLo Croup lll (llllquld
SecurlLles)
(b) 1he lmpacL cosL ls calculaLed on Lhe 13Lh of each monLh on a rolllng basls
conslderlng Lhe order book snapshoLs of Lhe prevlous slx monLhs Cn Lhe
basls of Lhe lmpacL cosL so calculaLed Lhe scrlps are moved from one
group Lo anoLher group from Lhe 1sL of Lhe nexL monLh
1able 43 lmposlLlon of Marglns
Croup
1radlng frequency (over Lhe
prevlous slx monLhs*)
lmpacL CosL (over Lhe
prevlous slx monLhs*)
Llquld SecurlLles
(Croup l)
AL leasL 80 of Lhe days
Less Lhan or equal Lo 1

Less Llquld SecurlLles
(Croup ll)
AL leasL 80 of Lhe days More Lhan 1
llllquld SecurlLles
(Croup lll)
Less Lhan 80 of Lhe days n/A
* lor securlLles LhaL have been llsLed for less Lhan 6 monLhs Lhe Lradlng
frequency and Lhe
lmpacL cosL ls compuLed uslng Lhe hlsLory of Lhe scrlp
CaLegorlsaLlon of newly LlsLed SecurlLles
(a) lor Lhe flrsL monLh and Llll Lhe Llme of monLhly revlew a newly llsLed
securlLy ls caLegorlsed ln LhaL group where Lhe markeL caplLallzaLlon of Lhe
newly llsLed securlLy exceeds or equals Lhe markeL caplLallzaLlon of 80

10
lmpacL cosL represenLs Lhe cosL of execuLlng a LransacLlon ln a glven sLock for a
speclflc predeflned
order slze aL any glven polnL of Llme120
of Lhe securlLles ln LhaL parLlcular group SubsequenLly afLer one monLh
whenever Lhe nexL monLhly revlew ls carrled ouL Lhe acLual Lradlng
frequency and lmpacL cosL of Lhe securlLy ls compuLed Lo deLermlne Lhe
llquldlLy caLegorlzaLlon of Lhe securlLy
(b) ln case any corporaLe acLlon resulLs ln a change ln lSln Lhen Lhe
securlLles bearlng Lhe new lSln ls LreaLed as newly llsLed securlLy for
group caLegorlzaLlon
1ypes of Marglns
ually marglns payable by Lhe Lradlng members ln Lhe Cash markeL conslsLs of Lhe
followlng
(l) value aL 8lsk (va8) margln
(ll) Mark Lo MarkeL Margln
(lll) LxLreme Loss Margln
1he marglns are compuLed aL cllenL level A member enLerlng an order needs Lo
enLer Lhe cllenL code 8ased on Lhls lnformaLlon margln ls compuLed aL Lhe cllenL
level whlch wlll be payable by Lhe Lradlng members on upfronL basls LeL us see ln
deLalls whaL ls meanL by Lhese marglns
value aL 8lsk Margln
va8 ls a slngle number whlch encapsulaLes whole lnformaLlon abouL Lhe rlsk ln a
porLfollo lL measures poLenLlal loss from an unllkely adverse evenL ln a normal
markeL envlronmenL lL lnvolves uslng hlsLorlcal daLa on markeL prlces and raLes
Lhe
currenL porLfollo poslLlons and models (eg opLlon models bond models) for
prlclng
Lhose poslLlons 1hese lnpuLs are Lhen comblned ln dlfferenL ways dependlng on
Lhe
meLhod Lo derlve an esLlmaLe of a parLlcular percenLlle of Lhe loss dlsLrlbuLlon
Lyplcally Lhe 99
Lh
percenLlle loss
CompuLaLlon of va8 Margln va8 Margln ls a margln lnLended Lo cover Lhe largesL
loss
LhaL can be encounLered on 99 of Lhe days (99 value aL 8lsk) lor llquld
securlLles
Lhe margln covers oneday losses whlle for llllquld securlLles lL covers Lhreeday
losses
so as Lo allow Lhe clearlng corporaLlon Lo llquldaLe Lhe poslLlon over Lhree days
1hls
leads Lo a scallng facLor of square rooL of Lhree for llllquld securlLles lor llquld
securlLles Lhe va8 marglns are based only on Lhe volaLlllLy of Lhe securlLy whlle
for
oLher securlLles Lhe volaLlllLy of Lhe markeL lndex ls also used ln Lhe compuLaLlon
(see
Lable 46)
Some ueflnlLlons CompuLaLlon of Lhe va8 margln requlres Lhe followlng
deflnlLlons
(a) SecurlLy slgma lL means Lhe volaLlllLy of Lhe securlLy compuLed as aL Lhe
end of Lhe prevlous Lradlng day 1he compuLaLlon uses Lhe exponenLlally
welghLed movlng average meLhod applled Lo dally reLurns ln Lhe same manner
as ln Lhe derlvaL lves markeL
(b) SecurlLy va8 lL means Lhe hlgher of 73 or 33 securlLy slgmas
(c) lndex slgma lL means Lhe dally volaLlllLy of Lhe markeL lndex (S Cnx
nlfLy or 8SL Sensex) compuLed as aL Lhe end of Lhe prevlous Lradlng day 1he
compuLaLlon uses Lhe exponenLlally welghLed movlng average meLhod applled Lo
dally reLurns ln Lhe same manner as ln Lhe derlvaLlves markeL 121
(d) lndex va8 lL means Lhe hlgher of 3 or 3 lndex slgmas 1he hlgher of
Lhe Sensex va8 or nlfLy va8 would be used for Lhls purpose
1able 46 va8 Marglns for ulfferenL Croups of SecurlLles
All securlLles are classlfled lnLo Lhree groups for Lhe purpose of va8 margln as
dlscussed above lor Lhe securlLles llsLed ln Croup l scrlp wlse dally volaLlllLy
calculaLed uslng Lhe exponenLlally welghLed movlng average meLhodology applled
Lo
dally reLurns 1he scrlp wlse dally va8 would be 33 Llmes Lhe volaLlllLy so
calculaLed
sub[ecL Lo a mlnlmum of 73 lor Lhe securlLles llsLed ln Croup ll Lhe va8 margln
ls hlgher of scrlp va8 (33 slgma) or Lhree Llmes Lhe lndex va8 and lL shall be
scaled
up by rooL 3 (v 3 ) lor Lhe securlLles llsLed ln Croup lll Lhe va8 margln would be
equal Lo flve Llmes Lhe lndex va8 and scaled up by v 3
upfronL margln raLes (va8 margln + LxLreme Loss Margln) appllcable for all
securlLles ln 1rade for 1rade Survelllance (1l1S) shall be 100
va8 margln raLe for a securlLy consLlLuLes Lhe followlng
(a) value aL 8lsk (va8) based margln whlch ls arrlved aL based on Lhe
meLhods sLaLed above 1he lndex va8 for Lhe purpose would be Lhe
hlgher of Lhe dally lndex va8 based on S Cnx nll1? or 8SL SLnSLx
1he lndex va8 would be sub[ecL Lo a mlnlmum of 3
(b) SecurlLy Speclflc Margln nSCCL may sLlpulaLe securlLy speclflc marglns
for Lhe securlLles from Llme Lo Llme
1he va8 margln raLe compuLed as menLloned above wlll be charged on Lhe neL
ouLsLandlng poslLlon (buy valuesell) of Lhe respecLlve cllenLs on Lhe respecLlve
securlLles across all open seLLlemenLs 1here would be no neLLlng off of poslLlons
across dlfferenL seLLlemenLs 1he neL poslLlon aL a cllenL level for a member are
arrlved aL and LhereafLer lL ls grossed across all Lhe cllenLs lncludlng proprleLary
poslLlon Lo arrlve aL Lhe gross open poslLlon
lor example ln case of a member lf cllenL A has a buy poslLlon of 1000 ln a
securlLy
and cllenL 8 has a sell poslLlon of 1000 ln Lhe same securlLy Lhe neL poslLlon of
Lhe
member ln Lhe securlLy would be Laken as 2000 1he buy poslLlon of cllenL A and
sell
poslLlon of cllenL 8 ln Lhe same securlLy would noL be neLLed lL would be summed
up
Lo arrlve aL Lhe member's open poslLlon for Lhe purpose of margln calculaLlon
CollecLlon of va8 Margln 1he va8 margln ls collecLed on an upfronL basls by
ad[usLlng agalnsL Lhe LoLal llquld asseLs of Lhe member aL Lhe Llme of Lrade 1he
va8
LlquldlLy CaLegorlzaLlon Cneuay
va8
Scallng facLor for
llllquldlLy
va8 Margln
Llquld SecurlLles (Croup l) SecurlLy va8 100 SecurlLy va8
Less Llquld SecurlLles
(Croup ll)
Plgher of
SecurlLy va8
and Lhree
Llmes lndex
va8
173
(square rooL of 300)
Plgher of 173
Llmes SecurlLy
va8 and 320
Llmes lndex
va8
llllquld SecurlLles
(Croup lll)
llve Llmes
lndex va8
173
(square rooL of 300)
866 Llmes
lndex va8122
margln ls collecLed on Lhe gross open poslLlon of Lhe member 1he gross open
poslLlon
for Lhls purpose would mean Lhe gross of all neL poslLlons across all Lhe cllenLs of
a
member lncludlng lLs proprleLary poslLlon lor Lhls purpose Lhere would be no
neLLlng
of poslLlons across dlfferenL seLLlemenLs
upfronL margln raLes (va8 margln + LxLreme Loss Margln) appllcable for all
securlLles ln 1rade for 1rade Survelllance (1l1S) shall be 100 1he lnLraday vA8
flles ls generaLed based on Lhe prlces aL 1100 am 1230 pm 200 pm and
330 pm everyday Such lnLraday vA8 flles are used for marglnlng of lnLraday
member poslLlons ln addlLlon Lo Lhe above a vA8 flle aL end of day and begln of
day ls provlded and Lhe same ls appllcable on Lhe poslLlons for nexL Lradlng day
MarkLoMarkeL Margln
Mark Lo markeL loss ls calculaLed by marklng each LransacLlon ln securlLy Lo Lhe
closlng prlce of Lhe securlLy aL Lhe end of Lradlng ln case Lhe securlLy has noL
been
Lraded on a parLlcular day Lhe laLesL avallable closlng prlce aL Lhe nSL ls Lo be
consldered as Lhe closlng prlce ln case Lhe neL ouLsLandlng poslLlon ln any
securlLy
ls nll Lhe dlfference beLween Lhe buy and sell values ls consldered as noLlonal loss
for Lhe purpose of calculaLlng Lhe mark Lo markeL margln payable
1he mark Lo markeL margln (M1M) ls collecLed from Lhe member before Lhe sLarL
of
Lhe Lradlng of Lhe nexL day 1he M1M margln ls collecLed/ad[usLed from/agalnsL
Lhe
cash/cash equlvalenL componenL of Lhe llquld neL worLh deposlLed wlLh Lhe
Lxchange
1he M1M margln ls collecLed on Lhe gross open poslLlon of Lhe member 1he
gross
open poslLlon means Lhe gross of all neL poslLlons across all Lhe cllenLs of a
member
lncludlng lLs proprleLary poslLlon lor Lhls purpose Lhe poslLlon of a cllenL would
be
neLLed across lLs varlous securlLles and Lhe poslLlons of all Lhe cllenLs of a broker
would be grossed
1here would be no neLLlng off of Lhe poslLlons and seLoff agalnsL M1M proflLs
across
Lwo rolllng seLLlemenLs le 1 day and 11 day Powever for compuLaLlon of M1M
proflLs/losses for Lhe day neLLlng or seLoff agalnsL M1M proflLs would be
permlLLed
ln case of 1rade for 1rade SegmenL (1l1 segmenL) each Lrade ls marked Lo markeL
based on Lhe closlng prlce of LhaL securlLy 1he M1M margln so collecLed ls
released
on compleLlon of payln of Lhe seLLlemenL
Lxample LeL us undersLand Lhe M1M compuLaLlon wlLh Lhe help of Lhe followlng
example
CllenL SecurlLy 11 day 1 day
1oLal proflL/loss
of CllenL
M1M
for
broker
CllenL A SecurlLy x 800 300
SecurlLy ? 300 1200
1oLal 300 900 900123
CllenL SecurlLy 11 day 1 day
1oLal proflL/loss
of CllenL
M1M
for
broker
CllenL 8 SecurlLy Z 700 400
SecurlLy W 1000 800
1oLal 300 400 300
CllenL C SecurlLy x 1000 300
SecurlLy Z 1300 800
1oLal 300 300 800
CllenL u SecurlLy ? 700 200
SecurlLy 8 300 800
1oLal 400 600 1000
Member 2000
lor a CllenL A hls M1M proflL/ loss would be calculaLed separaLely for hls
poslLlons on 1
1 and 1 day (Lwo dlfferenL rolllng seLLlemenLs) lor Lhe same day poslLlons of Lhe
cllenL
hls losses ln some securlLles can be seL off/neLLed agalnsL proflLs of some oLher
securlLles 1hus we would arrlve aL Lhe M1M loss/proflL flgures of Lhe Lwo
dlfferenL days
1 and 11 1hese Lwo flgures cannoL be neLLed Any loss wlll have Lo be collecLed
and
same wlll noL be seLoff agalnsL proflL arlslng ouL of poslLlons of Lhe oLher day
1hus as sLaLed above M1M proflLs / losses would be compuLed for each of Lhe
cllenLs
CllenL A CllenL 8 CllenL C eLc As regards collecLlon of margln from Lhe broker Lhe
M1M would be grossed across all Lhe cllenLs le no seLoff of loss of one cllenL
wlLh Lhe
proflL of anoLher cllenL ln oLher words only Lhe losses wlll be added Lo glve Lhe
LoLal
M1M loss LhaL Lhe broker has Lo deposlL wlLh Lhe exchange ln Lhls example Lhe
broker
has Lo deposlL M1M Margln of 8s 2000
LxLreme Loss Margln
1he LxLreme Loss Margln for any securlLy ls hlgher of
(a) 3 or
(b) 13 Llmes Lhe sLandard devlaLlon of dally logarlLhmlc reLurns of Lhe
securlLy prlce ln Lhe lasL slx monLhs 1hls compuLaLlon ls done aL Lhe
end of each monLh by Laklng Lhe prlce daLa on a rolllng basls for Lhe
pasL slx monLhs and Lhe resulLlng value ls appllcable for Lhe nexL
monLh
1he LxLreme Loss Margln ls collecLed/ ad[usLed agalnsL Lhe LoLal llquld asseLs of
Lhe
member on a real Llme basls
1he LxLreme Loss Margln ls collecLed on Lhe gross open poslLlon of Lhe member
1he
gross open poslLlon for Lhls purpose would mean Lhe gross of all neL poslLlons
across
all Lhe cllenLs of a member lncludlng lLs proprleLary poslLlon
1here would be no neLLlng off of poslLlons across dlfferenL seLLlemenLs 1he
LxLreme
Loss Margln collecLed ls released on compleLlon of payln of Lhe seLLlemenL 124
Cross Marglnlng
An offseLLlng poslLlon for a cllenL ln dlfferenL segmenLs has lower rlsk as loss on
one
poslLlon ls offseL by proflL ln Lhe oLher poslLlo n An example for an offseLLlng
poslLlon can be a buy poslLlon of 100 ln securlLy A" ln caplLal markeL and shorL
poslLlon of 100 ln sLock fuLures of securlLy A" ln derlvaLlve segmenL As Lhe rlsk
of
Lhe offseLLlng poslLlons ls lower Lhe margln requlremenL for Lhe comblned
poslLlons
has Lo be lower whlch ls consldered as cross marglnlng
1he beneflL of cross marglnlng ls provlded on Lhe followlng off seLLlng poslLlons
a lndex fuLures and consLlLuenL sLock fuLures for same explry ln lC
segmenL
b lndex fuLures and consLlLuenL sLock poslLlons ln Cash segmenL
c SLock fuLures ln lC segmenL and sLock poslLlons ln Cash segmenL
1he offseLlng poslLlons ln respecL of (a) and (b) above are compuLed conslderlng
Lhe
welghLage of LhaL securlLy ln Lhe lndex A flle ls provlded by nSL on lLs webslLe
wwwnselndlacom provldlng mlnlmum number of unlLs of sLock/sLock fuLure
requlred Lo offseL poslLlon ln lndex fuLure 1he number of unlLs ls changed only ln
case of change ln share caplLal of Lhe consLlLuenL securlLy due Lo corporaLe acLlon
or
lssue of addlLlonal share caplLal or change ln Lhe consLlLuenLs of Lhe lndex
1he cross marglnlng beneflLs are compuLed and provlded on an onllne real Llme
basls ln respecL of all exlsLlng and conflrmed poslLlons 1he offseLLlng poslLlons
are
marglned only Lo Lhe exLenL of 23 of all appllcable marglns (all upfronL marglns
le
lnlLlal marglns and Lxposure marglns)
Margln ShorLfall
ln case of any shorLfall ln margln
(a) 1he members are noL permlLLed Lo Lrade wlLh lmmedlaLe effecL
(b) enalLy for margln vlolaLlon
enalLy appllcable for margln vlolaLlon ls levled on a monLhly basls based on slabs
as
menLloned below ln 1able 47
1able 47 enalLy for Margln ShorLfall
lnsLances of ulsablemenL enalLy Lo be levled
1sL lnsL a n c e 007 per day
2nd Lo 3Lh lnsLance of
dlsablemenL
007 per day +8s3000/ per lnsLance from 2nd Lo
3Lh lnsLance
6Lh Lo 10Lh lnsLance of
dlsablemenL
007 per day+ 8s 20000 ( for 2nd Lo 3Lh lnsLance)
+8s10000/ per lnsLance from 6Lh Lo 10Lh lnsLance
11Lh lnsLance onwards
007 per day +8s 70000/ (for 2nd Lo 10Lh
lnsLance) +8s10000/ per lnsLance from 11Lh
lnsLance onwards AddlLlonally Lhe member wlll be
referred Lo Lhe ulsclpllnary AcLlon CommlLLee for
sulLable acLlon123
lnsLances as menLloned above refer Lo all dlsablemenLs durlng markeL hours ln a
calendar monLh 1he penal charge of 007 per day ls appllcable on all
dlsablemenLs
due Lo margln vlolaLlon anyLlme durlng Lhe day
Marglns for lnsLlLuLlonal deals
As speclfled by SL8l
1 1
all lnsLlLuLlonal LransacLlons should be marglned ln Lhe caplLal
markeL segmenL from 1+1 day subsequenL Lo conflrmaLlon of Lhe LransacLlons by
Lhe
cusLodlans lor Lhls purpose lnsLlLuLlonal lnvesLors lnclude
(a) lorelgn lnsLlLuLlonal lnvesLors (llls) reglsLered wlLh SL8l
(b) MuLual lunds (Mls) reglsLered wlLh SL8l
( c ) ubllc llnanclal lnsLlLuLlons as deflned under SecLlon 4A of Lhe
Companles AcL 1936
(d) 8anks le a banklng company as deflned under SecLlon 3(1)(c) of
Lhe 8anklng 8egulaLlons AcL 1949
(e) lnsurance companles reglsLered wlLh l8uA
(f) enslon lunds regulaLed by enslon lund 8egulaLory and
uevelopmenL AuLhorlLy (l8uA)
Levy of margln for lnsLlLuLlonal deals
(l) lnsLlLuLlonal LransacLlons are ldenLlfled by Lhe use of Lhe parLlclpanL code
aL Lhe Llme of order enLry
(ll) 1ransacLlons enLered lnLo on behalf of cusLodlal parLlclpanLs le carrylng
cusLodlal parLlclpanL code ls consldered as lnsLlLuLlonal deals unless noL
conflrmed by Lhe respecLlve cusLodlans ln whlch case Lhe LransacLlons
are consldered as a normal LransacLlons and all appllcable marglns are
levled on Lhe members
(lll) Members may also enLer lnS1" code ln Lhe cusLodlal parLlclpanL code aL
Lhe Llme of enLerlng orders on behalf of Lhe lnsLlLuLlonal cllenLs
(lv) Members are requlred Lo allocaLe Lhe lnS1 Lrades only Lo Lhe above
caLegorles
(v) ln respecL of lnsLlLuLlonal LransacLlons conflrmed by Lhe cusLodlans Lhe
marglns are levled on Lhe cusLodlans
(vl) ln respecL of lnsLlLuLlonal LransacLlons re[ecLed/noL accepLed by Lhe
cusLodlans Lhe marglns ls levled on Lhe members who have execuLed Lhe
LransacLlons
(vll) 1he marglns are compuLed and levled aL a cllenL (CusLodlal arLlclpanL
code) level ln respecL of lnsLlLuLlonal LransacLlons and collecLed from Lhe
cusLodlans/members
8eLall rofesslonal Clearlng Member
ln case of LransacLlons whlch are Lo be seLLled by 8eLall rofesslonal Clearlng
Members (CM) all Lhe Lrades wlLh CM code are lncluded ln Lhe Lradlng
member's
poslLlons Llll lL ls conflrmed by Lhe CM Marglns are collecLed from respecLlve
Lradlng
members unLll conflrmaLlon of Lrades by CM Cn conflrmaLlon of Lrades by CM
such Lrades are reduced from Lhe poslLlons of Lradlng member and lncluded ln
Lhe
poslLlons of CM 1he CM ls Lhen llable Lo pay marglns on Lhe same

1 1
SL8l Clrcular no M8u/uo/SL/Clr 06 /2008 March 19 2008126
Capplng of Marglns
ln case of a buy LransacLlon Lhe va8 marglns LxLreme loss marglns and mark Lo
markeL losses LogeLher should noL exceed Lhe purchase value of Lhe LransacLlon
ln
case of a sale LransacLlon Lhe va8 marglns and LxLreme loss marglns LogeLher
should
noL exceed Lhe sale value of Lhe LransacLlon and mark Lo markeL losses should
also be
levled
LxempLlon upon early ayln of SecurlLles
ln cases where early payln of securlLles ls made prlor Lo Lhe securlLles payln
such
poslLlons for whlch early payln (Ll) of securlLles ls made ls exempL from
marglns
1he Ll of securlLles ls allocaLed Lo cllenLs havlng neL dellverable poslLlon on a
random basls unless speclflc cllenL deLalls are provlded by Lhe member/
cusLodlan
Member/CusLodlans however should ensure LhaL approprlaLe early payln
beneflL of
margln ls passed on Lo Lhe relevanL cllenLs AddlLlonally member/cusLodlan can
speclfy Lhe cllenLs Lo whom Lhe early payln may be allocaLed
LxempLlon upon early ayln of lunds
ln cases where early payln of funds ls made prlor Lo Lhe funds payln such
poslLlons
for whlch early payln (Ll) of funds ls made are exempL from marglns based on
Lhe
cllenL deLalls provlded by Lhe member/ cusLodlan Larly payln of funds speclfled
by
Lhe member/cusLodlans for a speclflc cllenL and for a seLLlemenL ls allocaLed
agalnsL
Lhe securlLles ln Lhe descendlng order of Lhe neL buy value of ouLsLandlng poslLlon
of
Lhe cllenL
493 CnLlne Lxposure MonlLorlng
nSCCL has puL ln place an onllne monlLorlng and survelllance sysLem whereby
exposure of Lhe members ls monlLored on a real Llme basls A sysLem of alerLs
has
been bullL ln so LhaL boLh Lhe member and nSCCL are alerLed as per preseL levels
(reachlng 70 83 90 93 and 100) when Lhe members approach Lhelr
allowable llmlLs 1he sysLem enables nSSCL Lo furLher check Lhe mlcrodeLalls of
members poslLlons lf requlred and Lake proacLlve acLlon
1he onllne survelllance mechanlsm also generaLes varlous alerLs/reporLs on any
prlce/volume movemenL of securlLles noL ln llne wlLh pasL Lrends/paLLerns lor
Lhls
purpose Lhe exchange malnLalns varlous daLabases Lo generaLe alerLs AlerLs are
scruLlnlsed and lf necessary Laken up for follow up acLlon Cpen poslLlons of
securlLles are also analysed 8esldes Lhls rumors ln Lhe prlnL medla are Lracked
and
where Lhey are prlce senslLlve companles are conLacLed for verlflcaLlon 8eplles
recelved are lnformed Lo Lhe members and Lhe publlc
494 Cffllne MonlLorlng
Cffllne survelllance acLlvlLy conslsLs of lnspecLlons and lnvesLlgaLlons As per
regulaLory requlremenL Lradlng members are Lo be lnspecLed ln order Lo verlfy
Lhe
level of compllance wlLh varlous rules byelaws and regulaLlons of Lhe Lxchange
1he
lnspecLlon verlfles lf lnvesLor lnLeresLs are belng compromlsed ln Lhe conducL of
buslness by Lhe members127
493 lndexbased MarkeLwlde ClrculL 8reakers/ rlce 8ands for SecurlLles
An lndex based markeLwlde clrculL breaker sysLem applles aL Lhree sLages of Lhe
lndex movemenL elLher way aL 10 13 and 20 1hese clrculL breakers brlng
abouL a coordlnaLed Lradlng halL ln Lradlng on all equlLy and equlLy derlvaLlves
markeLs across Lhe counLry 1he breakers are Lrlggered by movemenLs ln elLher
nlfLy
30 or Sensex whlchever ls breached earller ueLalls of clrculL breakers are glven
ln
ChapLer 3
496 SeLLlemenL CuaranLee Mechanlsm
A large SeLLlemenL CuaranLee lund provldes Lhe cushlon for any resldual rlsk ln
Lhe
evenL of fallure of a Lradlng member Lo meeL seLLlemenL obllgaLlons or
commlLLlng
defaulL Lhe lund ls uLlllzed Lo Lhe exLenL requlred for successful compleLlon of
Lhe
seLLlemenL 1hls has ellmlnaLed counLer parLy rlsk of Lradlng on Lhe Lxchange 1he
markeL has now full confldence LhaL seLLlemenLs wlll Lake place ln Llme and wlll be
compleLed lrrespecLlve of posslble defaulL by lsolaLed Lradlng members
1he SeLLlemenL CuaranLee lund ls an lmporLanL elemenL ln faclllLaLlng Lhe
seLLlemenL
process 1he lund operaLes llke a selflnsurance mechanlsm and ls funded
Lhrough
Lhe conLrlbuLlons made by Lradlng members LransacLlon charges penalLy
amounLs
flnes eLc recovered by nSCCL
A parL of Lhe cash deposlL and Lhe enLlre securlLy deposlL of every clearlng
member
wlLh Lhe Lxchange has been converLed lnLo an lnlLlal conLrlbuLlon Lowards Lhe
SeLLlemenL CuaranLee lund as lndlcaLed ln 1able 48
1able 48 SeLLlemenL CuaranLee lundLqulLy SegmenL (ln 8s Lakh)
1ype of Member Cash ueposlL
SecurlLy ueposlL ln Lhe form of
8ank lu8/ guaranLee or securlLles
lndlvldual/
parLnershlp flrms
600
1730
CorporaLes 1300
2300
1here ls a provlslon LhaL as and when volumes of buslness lncrease members
may
be requlred Lo make addlLlonal conLrlbuLlons allowlng Lhe fund Lo grow alongwlLh
Lhe
markeL volumes
410 lnLernaLlonal SecurlLles ldenLlflcaLlon number
SL8l belng Lhe naLlonal numberlng Agency for lndla has permlLLed nSuL Lo alloL
lnLernaLlonal SecurlLles ldenLlflcaLlon number (lSln) for demaL shares Whlle
alloLLlng lSlns nSuL ensures LhaL
(a) 1he lSlns alloLLed by nSuL does noL aL any polnL of Llme breach Lhe
unlqueness of lSln of physlcal form for Lhe same securlLy
(b) lSln for a securlLy ls alloLLed only when Lhe securlLy ls admlLLed Lo
nSuL or on recelpL of requesL for lSln from CuSL
(c) 1he numberlng sysLem ls slmple128
(d) 1he numberlng sysLem of lSln ls ln compllance wlLh Lhe sLrucLure of
lSln adopLed by SL8l
numberlng SysLem of lSln 1he numberlng sLrucLure for securlLles ln nSuL ls of
12 dlglL alpha numerlc sLrlng 1he flrsL Lwo characLers represenL counLry code le
ln
(ln accordance wlLh lSC 3166) 1he Lhlrd characLer represenLs Lhe lssuer 1ype as
deLalled ln 1able 49
1able 49 lssuers 1ype
lssuer 1ype Code alloLLed
CenLral CovernmenL A
SLaLe CovernmenL 8
Munlclpal CorporaLlon C
unlon 1errlLorles u
Company SLaLuLory CorporaLlon 8anklng Company L
MuLual lunds lncludlng u1 l l
noLe lSlns for CovernmenL SecurlLles (Csec) le loans ralsed by CenLral and SLaLe
CovernmenL are alloLLed by 8eserve 8ank of lndla (88l)
1he llsL may be expanded as per need Maxlmum lssuer Lypes can be 33 (A Lo Z
and
0 Lo 8 1he parLly pald up shares are ldenLlfled by 9) 1he nexL 4 characLers
(fourLh
Lo sevenLh characLer) represenL company ldenLlLy of whlch flrsL 3 characLers are
numerlc and fourLh characLer ls alpha characLer 1he numberlng beglns wlLh
'001A'
and conLlnues Llll '999A' and proceeds Lo '0018' 1he nexL Lwo characLers (Lhe
elghL
and nlnLh characLers) represenL securlLy Lype for a glven lssuer 8oLh Lhe
characLers
are numerlc 1he nexL Lwo characLers (Lhe LenLh and elevenLh characLers) are
serlally
lssued for each securlLy of Lhe lssuer enLerlng Lhe sysLem LasL dlglL ls check dlglL
1he securlLy Lypes are planned whlch may be expanded as per Lhe need as
deLalled
ln 1able 41 0
1able 410 SecurlLy 1ypes
SecurlLy 1ype Code
LqulLy Shares 01
MuLual lund 01
ConverLlble reference Shares 03
non ConverLlble reference Shares 04
Secured uebenLures 07
unsecured uebenLures 08
8egular 8eLurn 8onds romlsory noLes 09
lloaLlng 8aLe 8ond 10
ueep ulscounL 8ond 11
SLep ulscounL 8ond 12
WarranLs 13
Commerclal aper 14
ass 1hrough CerLlflcaLe 13
CerLlflcaLe of ueposlL 16
SecurlLy 8ecelpL 18129


411 uaLa and 8eporL uownloads
nSCCL downloads varlous reporLs ln csv formaL Lo clearlng members wlLh regards
Lo
dally obllgaLlon reporL cusLodlal Lrade reporLs dellvery reporLs funds reporL
margln
reporLs eLc each of whlch ls dlscussed ln Lhe followlng secLlon
411 1 CbllgaLlon 8eporLs
(l) ually CbllgaLlon 8eporL 1hls reporL conLalns obllgaLlons of a Clearlng Member
(compuLed afLer segregaLlon of Lhe cusLodlal Lrades for Lradlng members) 1hls ls
a
dally reporL whlch ls downloaded aL Lhe end of Lhe Lradlng day Lo each Clearlng
Member 1hls reporL provldes securlLywlse lnformaLlon on
(a) ually purchases and sales and Lhelr value
(b) CumulaLlve purchases and sales and Lhelr value for Lhe Lradlng perlod
(ll) llnal CbllgaLlon 8eporL AL Lhe end of Lhe Lradlng perlod members recelve
SeLLlemenL CbllgaLlon SLaLemenL for funds and securlLles 1hls reporL lndlcaLes
Lhe
neL obllgaLlon Lo dellver or recelve for each securlLy ln whlch he has had deallngs
and
neL obllgaLlon Lo pay or recelve funds
(lll) neL ually CbllgaLlon 8eporL 1hls ls a dally reporL whlch ls downloaded aL Lhe
end of Lhe Lradlng day Lo each Clearlng Member 1hls reporL provldes securlLy
wlse
lnformaLlon on Lhe cumulaLlve neL purchases or neL sales and Lhelr value for Lhe
Lradlng day
(lv) neL llnal CbllgaLlon 8eporL 1hls ls a dally reporL whlch provldes Lhe neL
obllgaLlon for securlLles and funds Lo be dellvered or recelved and ls downloaded
on
Lhe 1+1 day
411 2 CusLodlal 1rade 8eporLs
(l) Crder ConflrmaLlon 8eporL 1hls reporL conLalns lnformaLlon of all CusLodlal
Lrades whlch are noL conflrmed by Lhe CusLodlans as of Lhe day of Lhe reporL
8ox 41 lnvesLor roLecLlon lund
lnvesLor roLecLlon lund (ll) has been seL up as a LrusL under 8ombay ubllc
1rusL AcL 1930 under Lhe name and sLyle of naLlonal SLock Lxchange lnvesLor
roLecLlon lund 1rusL and ls admlnlsLered by Lhe 1rusLees 1he purpose of ll ls
Lo Lake care of lnvesLor clalms whlch may arlse ouL of nonseLLlemenL of
obllgaLlons by Lradlng members 1he ll ls uLlllsed Lo seLLle clalms of such
lnvesLors whose Lradlng member has been declared a defaulLer or expelled by Lhe
Lxchange lurLher Lhe sLock exchanges have been allowed Lo uLlllze lnLeresL
lncome earned on ll for lnvesLor roLecLlon lund for lnvesLor educaLlon
awareness and research 1he maxlmum amounL of clalm payable from Lhe ll Lo
Lhe lnvesLor ls 8s 13 lakh130
(ll) CusLodlan 1rades 8eporL 1hls reporL glves Lhe Lrade deLalls such as symbol
cpcode cllenL code quanLlLy value for all Lrades execuLed by a member
(lll) 1rades 8eporL 1hls reporL glves Lhe sLaLemenL of all Lhe securlLles Lraded by
Lhe Lradlng member for Lhe respecLlve CusLodlal parLlclpanLs
411 3 uellverles 8eporLs
(l) uemaL llnal uellvery SLaLemenL (uluS) 1hls reporL provldes deLalls of Lhe
elecLronlc shares dellvered by a member as securlLles payln for varlous
seLLlemenLs
for Lhe glven seLLlemenL daLe 1he reporL ls sorLed on SeLLlemenL
1ype/SeLLlemenL
number/uellvery 1ype/Symbol/Serles/lSln
(ll) uemaL llnal 8ecelpL SLaLemenL (ul8S) 1hls reporL provldes deLalls of Lhe
elecLronlc shares recelved by a member as securlLles payouL for varlous
seLLlemenLs
for Lhe glven seLLlemenL daLe 1he reporL ls sorLed on SeLLlemenL
1ype/SeLLlemenL
number/uellvery 1ype/Symbol/Serles/lSln
(lll) CllenL AllocaLlon ueLalls (CAu1) 1hls reporL provldes deLalls of pay ouL
dlrecLly credlLed Lo Lhe cllenL's beneflclary accounL lL glves deLalls of u lu and
8eneflclary accounL where Lhe payouL ls credlLed and also deLalls of securlLles
whlch have noL been credlLed Lo cllenL accounL
(lv) Memberwlse WlLhheld SecurlLles SLaLemenL 1hls reporL glves deLalls for
securlLles payouL wlLhheld for members
(v) uellverles 8eporL AfLer allocaLlon Lhe nSLCM Clearlng SysLem generaLes
1radlng Memberwlse dellvery sLaLemenL 1hls dellvery sLaLemenL ls securlLy
wlse
1he sLaLemenL provldes lnformaLlon on dellverlng cenLre recelvlng cenLre
number of
shares Lo dellver or recelve for each securlLy and also Lhe code of Lhe recelvlng
enLlLy
or dellverlng enLlLy respecLlvely
(vl) SecurlLy ShorLage 8eporL 1he SecurlLy ShorLage SLaLemenL llsLs down Lhe
shorLage ln Lhe dellvery of Lhe securlLles as compared Lo Lhe Clearlng Members
obllgaLlon of securlLles payln 1he deLalls glven ln Lhe llsL conLaln Lhe dellverlng
cenLre recelvlng cenLre dellvery number agalnsL whlch securlLles are dellvered
shorL Lhe securlLy Lhe quanLlLy of shares dellvered shorL Lhe valuaLlon prlce and
Lhe amounL Lo be deblLed Lo Lhe dellverlng members accounL for Lhe quanLlLy of
shares dellvered shorL Lhe recelpL number and Lhe counLer parLy recelvlng
members
name/code
411 4 lunds 8eporLs
1wo lunds 8eporLs are belng downloaded Lo all Lradlng members on a dally basls
le ually lunds Summary SLaLemenL and ually lunds SLaLemenL
ually funds summary sLaLemenL provldes deLalls abouL Lhe LransacLlons effecLed
ln
Lhe Lradlng members clearlng accounL aL Lhe Clearlng 8ank 1hls sLaLemenL ls
slmllar
Lo Lhe 8ank sLaLemenL provlded by Lhe Clearlng 8ank 1he deblL appearlng ln Lhe
summary sLaLemenL ls equal Lo Lhe wlLhdrawals as per Lhe bank sLaLemenL and
Lhe
credlL ls equal Lo Lhe deposlLs as per Lhe bank sLaLemenL 131
ually funds sLaLemenL provldes Lhe breakup for each deblL and credlL appearlng
ln
L h e dally funds summary sLaLemenL 8oLh Lhe reporLs are downloaded on a
dally
basls afLer Lhe deblLs/credlLs have been effecLed by Lhe clearlng bank
411 3 AucLlon 8eporLs
(l) AucLlon Square up ueblL SLaLemenL 1hls reporL glves deLalls of unaucLloned
dellverles LhaL are squaredup by Lhe Lxchange
(ll) AucLlon Square up CredlL SLaLemenL 1hls reporL glves deLalls of
unaucLloned dellverles LhaL are squaredup by Lhe Lxchange 1hls reporL ls
downloaded aL Lhe end of Lhe aucLlon Lradlng day
(lll) AucLlon ulfference SLaLemenL 1hls reporL glves deLalls of Lhe aucLloned
dellverles for whlch Lhe valuaLlon prlce exceeds Lhe aucLlon Lraded prlce 1hls
reporL
ls downloaded aL Lhe end of Lhe aucLlon Lradlng day

411 6 Margln 8eporLs
(l) Memberwlse ually Margln ayable SLaLemenL 1hls reporL conLalns dally
margln amounL payable by Lhe members 1hls ls a dally reporL whlch ls
downloaded
aL Lhe end of Lhe Lradlng day Lo each Lradlng member 1hls reporL provldes
lnformaLlon on Lhe calculaLed margln amounL collaLeral amounL amounL pald Llll
daLe and calculaLed value of cash margln payable (+)/recelvable ()
(ll) Memberwlse Margln aymenL SLaLus 8eporL 1hls reporL conLalns Lhe
margln paymenL sLaLus of Lhe member 1hls ls a dally reporL whlch ls downloaded
aL
Lhe end of Lhe Lradlng day Lo each Lradlng member 1hls reporL provldes
lnformaLlon
on Lhe margln due daLe cash margln payln (+)/payouL () amounL LransacLed
and
amounL shorL

411 7 Mlscellaneous 8eporLs
1he followlng reporLs are downloaded ln Lhe common/clearlng folder on Lhe
exLraneL

(l) CorporaLe AcLlon 8eporL 1hls reporL glves Lhe sLaLemenL of Lhe corporaLe
acLlons whlch are seL by nSCCL (le dlvldend ACM book closure daLe record
daLe
eLc)

(ll) SecurlLles MasLer reporL 1hls reporL wlll dlsplay lnformaLlon regardlng
SecurlLy SeLLlemenL Mode for a parLlcular seLLlemenL Lype and number
(lll) SeLLlemenL Calendar 1hls reporL glves Lhe monLhly seLLlemenL schedule
lurLher Lhe followlng reporLs are also avallable on Lx18AnL1
(l) ueLalled Margln 8eporL (MC02) 1hls reporL provldes cllenL wlse securlLy
wlse and seLLlemenL wlse amounL of margln and exposure for Lhe day132
(ll) ConsolldaLed Margln 8eporL (MC01) 1hls reporL provldes amounL of margln
payable and amounL of exposure and MA8C avallable for Lhe day
(lll) Member Wlse S11 flle (MWS1) 1hls flle glves Lhe deLalls of cllenL wlse
securlLy wlse SecurlLles 1ransacLlon 1ax calculaLed for Lhe memb er for a Lradlng
day