The Bombay Stock Exchange (BSE) has said it has issued guidelines for securities trading using wireless technology.
Last month, the Securities and Exchange Board of India (Sebi) had issued the necessary guidelines for providing “securities trading using wireless technology” which includes devices such as mobile phones and laptops with data card. To avail of the facility, trading members will have to submit an application that will be followed by a system audit. The application should also include vendor certificate and self-certification by the member, a BSE statement said.
According to the pre-approval requisites, the software and the system proposed for securities trading should be duly certified by the BSE-empanelled system auditor. Audit charges for the same will be debited to the members’ settlement account pursuant to the system audit/approval by the exchange.
Only on fulfillment of the requirements mentioned in the Sebi/BSE circulars shall permission, for commencing securities trading using wireless technology, be granted, it said.
As per the approval requisites, BSE stated that in the event of a failure of the wireless network, alternative means of communication for placing orders should be made available to the clients. Members at their end, are required to comply with operational specifications and risk management mentioned in the Sebi circular, besides following the BSE-prescribed rules.
