Submit risk-based supervision info by Nov 30: NSE to brokers

Leading bourse NSE asked its members to submit risk-based supervision (RBS) data for the first half of this fiscal by November 30.

The data for the period April 1 September 30 has to be submitted in electronic form only.

The exchanges introduced a new risk-based model for supervision of market entities, following markets regulator Sebi's directions.

In a circular, the exchange has asked the members to submit the data "electronically through the inspection module in the member portal latest by November 30, 2016".

The brokers who fail to make timely submission of risk-based supervision data will have to pay penalty of Rs 10,000 or more. Besides, prolonged non-compliance would result in disablement of trading terminals.

Trading members have been submitting risk-based supervision data since 2013-14. However, there have been instances of delayed or non-submission of data.

Accordingly, the exchanges, in consultation with Sebi formulated the timetable for submission of RBS data and also the penalty provisions for delayed or non-submission of such provision.

The Securities and Exchange Board of India (Sebi) 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.

The data collated from the members towards risk based supervision would be shared with the capital market regulator.