BSE extends direct market access facility
Posted on: 2015-08-22 Posted by: CLAT Gurukul Category: Archive Blog
On 19 August the Bombay Stock Exchange (BSE) has extended the direct market access facility (DMA) to foreign portfolio investors (FPI). Henceforth, the foreign investors will have direct access to the exchange trading system in Indian stock market without any manual interventions of the broker. Earlier FPI had to conduct stock exchange trading in BSE through the broker who used to manually place the orders on their behalf. According to SEBI regulations FPI seeking to avail DMA facility would not have to enter into a separate ‘broker- client agreement’ and it would be replaced by a simpler ‘terms and conditions’ document. Henceforth the broker has to specifically authorize their clients and have to provide a technologically secure DMA system to their FPI clients. They are obliged to maintain client KYC records relating to exchange trading and have to maintain client margins in a separate bank account and also have to send settlement updates to the client including delivery/payment schedules. Source: Business Standard
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