NATIONAL STOCK EXCHANGE OF INDIA LIMITED
CAPITAL MARKET OPERATIONS
CIRCULAR
Circular
No.: NSE/CMO/0258/2005
Download
No. NSE/CMTR/6845
Date:
November 8, 2005
Dear Members,
Sub: Mock
trading session on November 12, 2005 in Capital Market segment
In accordance with the SEBI letter MRD/DoP/SE/Cir-
19/05 dated September 02, 2005 notifying scheme / guidelines outlining a
facility of allowing Stock Exchanges to provide separate trading window to
facilitate execution of large trades, a separate window is being introduced by
the Exchange.
In
order to make the members acquainted with the new facility being introduced by the Exchange for
execution of block trades in the capital market segment, the Exchange will be conducting a mock trading session in
the capital market segment on Saturday, November 12,
2005. Upon successful mock trading, the
block trades session will go live with effect from Monday, November 14, 2005. The schedule for mock
trading session is as per Annexure 1.
Members are requested
to note the following points in respect of the block trades session:
·
Market Type & Series: Trading will be conducted in the Odd Lot market
(market type ‘O’) with Book Type ‘OL’ and series ‘BL’.
·
Trading hours:
35 minutes from the beginning of trading hours i.e. the trading window shall normally
remain open from 9.55 hours to 10.30 hours. There shall be no pre-open and post
close in the block trade session.
·
Order should be of
a minimum quantity of 5,00,000 shares or minimum value of Rs 5 crore which ever
is lower.
·
Trading module: Orders will get matched when both the price and the
quantity match for the buy and sell order. Orders with the same price and
quantity will match on time priority i.e. orders which have come into the
system before will get matched first.
·
Market Order: Currently, market orders
will not be allowed for BL series.
·
Price: The securities, base price, alert quantity applicable
in the block trade session shall be same as those applicable for the
corresponding Normal Market on that day. But as per SEBI requirement, member is required to
put orders at a price not exceeding +/-1% from the previous close price/ruling
market price, as applicable, of normal market. Accordingly, every order price
will be validated for +/-1% on the ruling LTP in normal market and any order
away from this will be rejected by the system.
·
Special Terms: Order with special terms such as
'Stop Loss', 'Disclosed Quantity' shall not be available in this session.
·
Bhav Copy: Security statistics pertaining to
this session trades shall be shown separately in the Market Statistics Report. Last
trade price would be the close price for BL series since BL series is not
available for trading in the last half hour of odd lot market.
A separate annexure giving the features of the Block
trades session is as per Annexure 2.
With respect to Clearing and Settlement of
Block Deals, please refer Annexure 3.
To
participate in the block trades session, members are required to invariably
load the security.txt and nnf_security.dat file (downloaded everyday through
Extranet) into the NEAT/NEATPlus software.
Members are advised to participate actively in the
mock trading session and are required to login into live environment, on
Saturday November 12, 2005 from 17:30 hours to 18:00 hours, to check the
connectivity and also to avoid login problems on Monday, November 14, 2005.
Members using CTCL facility are also advised to actively participate in the
mock trading session using CTCL software.
Interactive reports from the trader workstation
(TWS) for trades done on Friday November 11, 2005 will be available
only till 23:00 hrs on Friday November 11, 2005. Members are advised
to take the download of reports within the prescribed time.
Members may please note that all the trades resulting
from mock trading on November 12, 2005 shall not attract any obligations in
terms of funds and/or securities payin and payout. Members are also requested
not to transfer any data file for this mock trading.
Members are also advised to refer to the website of NSE
at www.nseindia.com for any information
which may be updated by the Exchange on the mock session .
For
any clarifications, members are advised to contact the following officials:
Mr. Vishal Bohra / Mr.
Nilesh Dhage / Ms. Shweta Kelkar / Mr. Jimit Shah at 26598153 /26598156/26598157.
For and on behalf of
National Stock Exchange of India Ltd.
Suprabhat Lala
Asst. Vice President (Capital Market)
ANNEXURE 1
Schedule for
the Mock Trading session
For Saturday, November 12, 2005:
Mock Normal/RDM/Limited Physical Market/ Block trade session Open : 10:30
hours
Mock Block
trade session (BL series) close :
11:05 hours
Mock
Mock
Mock
Mock
Mock
Auction Market Open : 12:00 hours
Closing
Session start : 13:05 hours
Closing
Session end : 13:15 hours
ANNEXURE 2
The trading system features and user navigation for Block trades
session is given below.
·
Setting up
Securities in Market Watch – For
setting up securities in the Market Watch screen, the user has to press the
function key [F4], enter the required details in Symbol, Series and Market Type
fields and press [Enter]. The default option displayed in the market type field
is ‘N’. This can be changed to ‘O’ using the Up/Down arrow keys. The series has
to be specified as ‘BL’.
·
Order entry – Buy/Sell order can be
entered in Block trades session using the function keys (F1/F2), selecting ‘OL’
in the Book Type field and series as ‘BL’.
·
Order
Cancellation/Modification – Order
cancellation and modification is allowed for orders entered in the Block trades
session. Both Single and Quick Order Cancellation functions are available. In
case the quantity or price of a security is modified the order is re-time
stamped.
·
MBO - MBO for Block trades session shall be available on
inquiry basis. Hence, members have to reinvoke the screen in order to view the
latest update. Members can query order information for the Block trades session
in MBO by selecting ‘ODD LOT’ as book type and series ‘BL’ in the selection
screen. Orders are stacked as per price-time priority in MBO. The high, low,
last trade price, percentage change and average trade price figures are
calculated with respect to trades in Block trades session. MBP functionality is
not available for Block trades session.
·
Market Inquiry
- Security statistics for Block
trades session can be viewed by selecting ‘ODD LOT’ as market type and series
as ‘BL’.
·
Outstanding
Orders/Activity log/ Previous Trade - Outstanding
order/ Activity log/ Previous Trade information in a particular security can be
viewed for Block trades session by selecting the book type ‘ODD LOT’ and series
‘BL’ in outstanding orders screen and market type ‘ODD LOT’ and series ‘BL’ in
the Activity Log and Previous Trade screens.
·
Order and
Trade Confirmation Slips - The order
confirmation slip for orders entered in Block trades session displays ‘O’ as
Market Type field and series ‘BL’. Similarly, trade confirmation slip generated
for Block trades session trades show ‘O’ in the Market Type field and series
‘BL’.
·
Net Position –
The Net Position screen
displays consolidated statistics for all markets as well as separately for each
market.
·
Market
Movement – Market Movement statistics
for a security can be viewed by selecting market type as ‘Odd Lot’ and series
‘BL’.
·
Most Active
Securities – In Most active securities screen data is displayed symbol-series wise. This
screen would display price statistics of BL series also if it figures in the
most active list.
·
On-line Backup
– In the On-line Backup
function a facility is provided to select order/trades based on Market Type and
series. Alternately, members can take a backup for all markets by selecting
‘All’ in the market type field.
·
Full Message
Display – In Full Message
Display, messages can be filtered on Symbol and Series. The option to filter
messages for a market type is presently not available. Hence, messages for a
Symbol-Series shall be displayed for all markets.
·
Branch/User
Order Value Limit - Branch/User Order
Limit is applicable for a particular Branch/User across all Markets.
·
Security wise user wise order quantity limit: This limit will be applicable for a symbol across all
series, across all the markets.
·
Order Limits -
Order limits set by a user are
applicable for a single order across all Markets.
·
Ticker
Selection – A facility is provided
for filtering securities in the ticker for Odd Lot market.
·
Reports – Trades reports generated for members i.e. Trades
Done, Order Log and Open Orders report, displays records in ascending order of
security name. Within a security records are displayed by Market Type.
ANNEXURE 3
Clearing
and Settlement of Block Deals
In pursuance of SEBI circular no MRD/DoP/SE/Cir- 19
/05 dated September 2, 2005 regarding
execution of block deals, members are requested to note the following details
regarding clearing and settlement of block deals executed on the Exchange:
- All trades shall be settled under settlement type ‘N’ and series
‘BL’.
- Deals will be cleared on a rolling basis (T+2) and shall be
compulsorily settled in dematerialized mode only.
- Non delivery of securities shall be compulsorily closed out on the
settlement day as per rates applicable for close out in the rolling
segment.
- Settlement guarantee shall be extended for trades in this series as
is being done for the existing series in normal market.
- All other provisions including the procedures for trade
modifications, client code modifications, computation of securities
transaction tax, reporting institutional deals, risk management,
withdrawal of trading facilities, penalties etc. will be as applicable in
the normal market segment.
- Members desirous of
making early pay-in in this segment shall give specific EPI as detailed in
Download Ref. No. NSE/CMPT /6481
dated August 5, 2005.