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Coronavirus outbreak: Stock exchanges allow brokers to work from home

Press Trust of India  |  New Delhi 

Stock brokers have been allowed to access the market from their homes till April 30 in the wake of the coronavirus pandemic.

This could be the first time brokers have been given this facility, according to market experts.

In separate circulars, the BSE and the NSE said they have allowed brokers and traders to take terminals outside the authorised locations. The move will permit brokers to work from home.

The arrangement will continue till April 30 or longer if the situation demands, they added.

The move comes after the exchanges received representations or enquiries from trading members regarding operation of trading terminals from locations other than those reported to the exchange, as a preventive measure, in view of the prevailing coronavirus pandemic.

In view of this and as a temporary measure, the BSE and the NSE said stock brokers will be permitted to operate the trading terminals from locations other than those reported to the exchange. This is subject to compliance of certain guidelines.

These include: Stock brokers will have to frame an internal policy to prevent any unauthorised trading and provide a list of approved users, their details such as terminal details, certificate details and the alternative location address to the exchanges.

"Such policy shall be duly approved by the member's appropriate authority such as CEO/designated director/compliance officer/partner/proprietor, as the case may be," the exchanges said in similar-worded but separate circulars.

"Members shall have a mechanism in place to monitor such terminals and ensure that the terminals are being operated from such designated alternate locations only and by the approved users," they added.

Stock brokers have been asked to undertake necessary due diligence with respect to operation of such trading terminals and will be liable for any improper use of the trading terminals by any of the users.

Earlier, the exchanges have asked their employees to work from home as a precautionary measure in view of the prevailing coronavirus pandemic.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, March 22 2020. 17:14 IST