Bourses extend submission time for risk-based supervision data

Leading stock exchanges, BSE and NSE, today extended the time for submission of risk-based supervision data by brokers for the past fiscal to May 31.
Earlier, brokers were required to submit the RBS data by May 15.
"Based on the representation from members, we wish to inform you that the due date for submission of data has been extended to May 31, 2016," National Stock Exchange (NSE) said in a circular.
BSE separately said that the last date would be May 31 for submission of data for the financial year ended March 31.
The exchanges have introduced a new risk-based model for supervision of market entities, following Sebi's directions.

Trading members have been submitting risk-based supervision data since 2013-14. However, there have been instances of delayed or non-submission of data.

Accordingly, the exchanges in consultation with Sebi have formulated a standard penalty structure for the non/delayed submission of RBS data, which will be applicable for the data for 2015-16 onwards.
BSE further said submission of information within 61 days will not attract any penalty. Earlier, this timeline was 45 days. However, a fine of Rs 10,000 will be imposed in case brokers submit the data after 61 days but within 66 days.
The exchange will levy a fine of Rs 10,000 plus Rs 2,000 per day for submissions made after 66 days but within 76 days.

The trading member will not be allowed to register any new clients in exchange UCC (Unique Client Code) database in case of non-submission of data even after 76 days. This will be implemented across the exchanges, even if data is submitted to one bourse.
"Registration of new clients will be allowed after data is submitted to all the exchanges," BSE said.
Non-submission of information after 106 days will also attract disablement of trading terminals by all stock exchanges, irrespective of the bourse where the trading member has not submitted the data.
"Disablement of terminal and no new registration of clients will be allowed till the data is submitted to all the exchanges," it added.

Besides, highest risk-rating will be assigned to the parameters for which data is not submitted by the member.
Sebi decided to adopt this new supervision model, based on level of risks posed by a market entity, to help it better regulate the marketplace and strengthen its surveillance system.
Under the model, various market entities are divided broadly into four groups -- very low risk, low risk, medium risk and high risk -- and the quantum of surveillance and number of inspections would increase as per the risk level.
The move helps the surveillance system take care of most of the smaller offences, so that the investigation resources are utilised more effectively to tackle serious violations in the market place. The data collated from the members towards risk based supervision would be shared with Sebi.