A complete shut down of stock market trading could be averted in the wake of the COVID-19 issue in India. This is after the National Stock Exchange (NSE) allowed stock brokers to re-locate their trading terminals to any remote location, on condition that specific details be made available to the exchange. Brokers can now accommodate their staff with trading terminals, which is a computer and an internet connection, at their respective home from where client trades can be punched in.

Sources close to exchanges and the Securities and Exchange Board of India (SEBI) said that this facility of shifting of trading terminals will also be extended by other equity and commodity bourses. While equity markets are functioning between 9 am to 3.30 pm, the commodity markets are functioning up to 11 pm. For many brokers, the trading terminals for buying and selling in equity and commodity are also the same. 

While large institutions use direct market access facility, retail clients dictate buy and sell orders over the phone. Brokers will only have to do an effective risk management system for each terminal and client, which can be done even if the terminal is shifted. The Maharashtra government has announced a phased lock-down in the state but allowed market related institutions to function due to logistic related issues.

“Members, shall frame an internal policy in this regard clearly mentioning the controls & checks put in place to prevent any unauthorised trading activities. The policy shall list down the users and their details who will be permitted to operate from such location and the duration. 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. 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,” the NSE said in its circular.

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