Transaction work flow for the system of Straight Through Processing in the Indian Securities Market and standardisation of the messaging formats

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....the issuance of electronic contract notes as a legal document like the physical contract note for the equity and debt segments, circular No. DNPD/Cir-22/2004 dated April 1, 2004 mandating the use of the Straight Through Processing (STP) system for all institutional trades w.e.f. July 1, 2004, circular No. DNPD/Cir-23/04 dated April 27, 2004 prescribing the detailed system flow of the STP system and Circular No. DNPD/Cir-24/04, dated May 26, 2004 prescribing the SEBI (STP centralised hub and STP service providers) Guidelines, 2004. 2. SEBI in consultation with the STP centralised hub, STP service providers and the STP users has prescribed the transaction work flow for the STP system. All institutional investors shall follow the following tr....

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....ng formats in the following manner: i. IFN 544: confirmation/rejection of an instruction received in messaging format IFN 540 ii. IFN 545: confirmation/rejection of an instruction received in messaging format IFN 541 iii. IFN 546: confirmation/rejection of an instruction received in messaging format IFN 542 iv. IFN 547: confirmation/rejection of an instruction received in messaging format IFN 543 f. It is clarified that if a message (for the activities mentioned above) is sent using the STP centralised hub framework from one user to another user, then the confirmation/rejection for such a message shall also be sent using the STP centralised hub framework. 3. SEBI vide circular No. DNPD/Cir-9/04 dated February 3, 2004 had prescrib....

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....a mandatory field in the contract note. The order time shall now be included in the optional fields. e. There are certain securities which are not de-materalised and hence do not have an ISIN code. For such securities (where ISIN number is not available) the STP users would be required to input the security code given by the exchange in the ISIN number field. In case the number length of the exchange scrip code is shorter than the prescribed field length of 12 characters, the code shall be prefixed with zeros. f. In order to maintain a complete audit trail, it is clarified that in case an electronic contract note is rejected, the custodian (in messaging format IFN 548) or the fund manager (in messaging format IFN 598) shall be required ....

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....FN 542, IFN 543, IFN 544, IFN 545, IFN 546, IFN 547, IFN 548 and IFN 598 are enclosed in Annexure II. After consultation with the market participants and confirming their preparedness, it has been decided to make these messaging formats (in addition to IFN 515) mandatory for all institutional trades w.e.f. July 1, 2004. 5. It is reiterated that the STP system shall be initially mandatory for all institutional trades in the equity segment w.e.f. July 1, 2004. 6. The standard terms of contract as are required to be mentioned in the Contract Notes as per the Bye-laws and Regulations of exchanges, which are not contained in electronic contract notes, shall be incorporated in the Client Broker Agreement or where applicable, the Tripartite Agre....