Brokers get more time to submit data on risk-based supervision

Leading stock exchanges BSE and NSE have extended the deadline for brokers to submit data regarding risk-based supervision for the first half of the current fiscal to November 20.
The non-submission of the data by members may attract disciplinary action.
The exchanges had earlier asked its trading members to collate and submit the data for the period of April 1 - September 30, 2015 by October 31.
The exchanges, in separate circulars, said that the deadline has been further "extended to November 20" on request of its trading members.
The stock exchanges have in place a new risk-based model for supervision of market entities, following directions of markets regulator Sebi.

In a late night circular yesterday, BSE said: "The members may note that the submission is to be made only electronically through BSE Electronic Filing System (BEFS). No physical copies are required to be submitted to the exchange."

The exchanges said that the submission of risk-based supervision data is mandatory for all active members of the exchange.
Further, the data collated from the members towards risk-based supervision would be shared with Sebi.
"In case of any non-submission by a member, appropriate disciplinary action may be initiated," the exchanges noted.
The Securities and Exchange Board of India (Sebi) has 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.