1.
Pursuant to Section 131 of the Finance Act, 2015 and Central Government
notification F.No. 1/9/SM/2015 dated August 28, 2015, all recognized
associations under the Forward Contracts
(Regulation) Act, 1952 are deemed to
be recognized stock exchanges under the Securities Contracts (Regulation)
Act, 1956 with
effect from September
28, 2015. This circular applies to National Commodity Derivatives Exchanges
(Exchanges) as defined in the Securities Contracts (Regulation) (Stock Exchanges and
Clearing Corporations) (Amendment) Regulations, 2015.
2.
Due
to technological developments and innovations, currently the members of
exchanges have multiple options for using software i.e. either exchange provided or in-house developed
software which is being used
for trading and risk management related activities.
3. In the securities market, in order to avoid
any disruption like event due to
malfunctioning of software used by the
trading members / brokers, it was felt
necessary to strengthen the process
of testing of software before deployment.
In this regard, based on the recommendations of Technical Advisory Committee (TAC), SEBI had specified guidelines
for testing procedures vide circulars CIR/MRD/DP/24/2013 dated
August
19,2013 and
circular CIR/MRD/DP/06/2014 February 07, 2014 which are made applicable to the securities market.
4. Since
new software or changes to the existing
software without proper testing may affect the integrity of the markets, it has been decided to make the provisions of the aforesaid circular also applicable to commodity markets. The
major provisions covered
are as under:
a. Testing of Software
b. Approval of Software of brokers/members
c. Undertaking to be provided
by the brokers/members
d. Sharing of Application Programming Interface
(API) specifications by the brokers/members
e. Penalty on malfunction of software
used by brokers/members
5. The circular shall be applicable for Exchanges with effect from April
01, 2016.
6. The Exchanges are advised to:-
• Make
necessary amendments to relevant
bye-laws/rules
for
the
implementation of this circular
• Communicate SEBI, the status of implementation of the provisions of
this circular
7. The circular is issued in exercise of the powers conferred under section 11(1)
of the Securities and Exchange Board
of India Act, 1992, to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market.
8. The circular is available on SEBI
website at i.e. www.sebi.gov.in.
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Official Blog Fema India Experts Connect with our Facebook Page:- Click and Like our Page Subscribe our Email updates like other 13,300 Members, Free/Easy/Comfortableway
