In a bid to allow stockbrokers to work remotely, the National Stock Exchange (NSE) has allowed relocation of trading terminals to locations other than those authorised. In a circular titled “operational business continuity measures Covid-19”, the exchange said in view of the coronavirus pandemic trading members will have the option of relocating their trading infrastructure subject to conditions.
The exchange has asked broking houses to frame an internal policy to stating proper monitoring and controls to prevent unauthorised trading activity. Further, brokerages will have to provide details of users who will be permitted to operate from remote locations. The brokerages will be responsible to ensure that only approved users get access to terminals.
“Before operation of terminals from the alternate locations, provide the list of the approved users, terminal details, segment, certificate details and the alternate location address to the exchange,” NSE said.
Under the existing policy, a trading terminal can only be operated from the main office or branches. Also, brokers have to display Sebi registration certificate on their notice board.
The exchange has as a temporary measure these requirements stand relaxed till April 30 following which “the terminals shall be operated only from the locations reported to the exchange.”
NSE has said the internal policy for working from alternative locations will have to be approved by a senior authority such as CEO, director or compliance officer.
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Meanwhile, NSE has also issued a ‘work from home advisory’ for its employees. Sources say it has divided its employees into two categories—those who can from work from home and those who need to come to the exchange premises.
On Friday, the Maharashtra government ordered the closure of all working place in Mumbai, Pune, Pimpri Chinchwad and Nagpur till March 31. The state government, however, said the directive will not be applicable to stock market ecosystem.
“Stock exchanges, clearing corporations, depositories, stockbrokers and Sebi-registered participants operating through these institutions will be exempted,” Chief Minister of Maharashtra Uddhav Thackeray tweeted on Friday.
The US Securities and Exchange Commission has announced that it has transitioned to a “full telework posture” in response to the outbreak.