TaxTMI 
TaxTMI 
Straight Through Process ing Service in the Indian Securities Market
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....s, 2004 (herein referred to as "STP Guidelines") which also prescribes the model agreement between the STP centralised hub and the STP service providers. (3) The STP guidelines prescribes the eligibility criteria and conditions of approval for the STP centralised hub and the STP service providers, obligations and responsibilities of the STP centralized hub and the STP service providers and code of conduct for the STP service providers. The STP centralised hub and the STP service providers shall abide by these Guidelines. (4) To prescribe contractual obligations between the STP centralised hub and the STP service providers and to facilitate standardisation of service, a model agreement between the STP centralised hub and the STP service providers has also been prescribed by SEBI and is prescribed as Schedule II of the STP Guidelines. The agreement between the STP centralised hub and the STP service provider shall include the provisions included in the model agreement. (5) This circular is being issued in exercise of powers conferred by section 11(1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contracts (regulation) Act 195....
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....e stipulated by SEBI; and, (j) "TRAI" means the Telecom Regulatory Authority of India established under the Telecom Regulatory Authority of India Act, 1997. (2) Words and expressions used and not defined in these Guidelines, but defined in the Act or in the Securities Contracts (Regulation) Act, 1956 or in any rules or regulations made thereunder, shall have the meanings respectively assigned to them in such Acts, rules or regulations. 3. Eligibility criteria for STP centralised HUB and STP service providers (1) No person shall act as an STP centralised hub or a STP Service provider unless it obtains approval from SEBI to provide such service. (2) For the grant of a certificate of approval SEBI shall take into account the following : i. whether the applicant is a person or entity with a minimum networth as may be prescribed from time to time. ii. whether the applicant has adequate infrastructure facilities setup in India like office space, equipment and manpower with adequate experience in dealing in securities market and adequate expertise in providing necessary servic....
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....ain a complete record of the flow of messages processed. The records of the STP centralised hub shall be open for inspection by SEBI or any other person duly authorised by SEBI for this purpose. xiii. The STP centralised hub shall not modify/amend the communication protocol without consulting all the approved STP service providers. xiv. The STP centralised hub shall ensure that the message is not misused or tampered with while in its possession. xv. The STP centralised hub shall maintain confidentiality of information about its users and shall not divulge the same to other clients, the press or any other person except in accordance with law or as per the directions of any court of law or of SEBI. xvi. The STP centralised hub may charge reasonable fees from the STP service providers. 5. Obligations and responsibilities of STP service provider (1) The STP Service provider shall comply with the following :- i. The STP service provider shall at all times comply with the requirement of eligibility criteria, specified by SEBI. ii. The STP serv....
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....riod. xiv. The STP service providers shall digitally sign all messages sent from it to the STP centralised hub. xv. The STP service provider shall enter into an agreement with all its STP users which shall also specify the fees payable by the STP user for the services. xvi. The STP service provider shall maintain a directory of the STP users connected to it. xvii. The STP service provider shall maintain a complete record of the flow of messages handled. The records of the STP service provider shall be open for inspection by SEBI or any other person duly authorised by SEBI for this purpose. xviii. The STP service provider shall verify the Digital signature on the message of the STP user connected to the STP service provider xix. The STP service provider shall ensure that the message from the STP user is in the specified messaging format. xx. The STP service provider shall promptly deliver messages to and from the STP user. xxi. In respect of inter STP service provider messages, the STP service provider shall perform all actions to the best....
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....he messages processed by it under the scheme and in particular the records in respect of :- i. the STP users ii. the messages exchanged within the same STP service provider iii. the messages exchanged with other STP service providers through the STP centralised hub f. The STP service provider shall ensure that the message is not misused or tampered with while in its possession. g. The STP service provider shall maintain confidentiality of information about its users and shall not divulge the same to other clients, the press or any other interested party except in accordance with law or as per the directions of any court of law. h. The STP service provider shall abide by all the provisions of the Act, Rules, Regulations, Guidelines, Resolutions, Notifications, Directions, Circular, etc. as may be issued by the Government of India/Telecom Regulatory Authority of India/Department of Telecommunications and Securities and Exchange Board of India from time to time as may be applicable to....
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....Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent enhancements/upgradations, and all other IP compatible protocols; and 5. "Telecom authority" shall mean the Director General, DoT, Government of India and includes any officer empowered by him to perform all or any of the functions of the Telegraph Authority under the Indian Telegraph Act, 1885 or such other authority as may be established by law. 6. "TRAI" - shall mean the Telecom Regulatory Authority of India established under the TRAI Act, 1997. B. Fees payable by STP service provider The STP Service Provider agrees to pay Fees as listed in the Annexure in consideration for the services provided by STP centralised hub hereof. The said fees may be revised by STP centralised hub as may be mutually agreed upon with the STP Service Providers. The STP service provider shall also be liable to pay interest @...% p.a. in case of delay in payments on the amount due till the actual date of payment. C. STP Service provider obligation 1. The STP Service Provider shall obtain a digital signature certificate from a C....
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.... provided by STP centralised hub a. No damage will be caused to the STP Centralized hub, and that it does not propagate virus infected information. b. It will pass on only relevant information to be exchanged with the other STP service provider. c. It will not try to probe any other information available on the STP Centralized Hub. D. STP Centralised HUB Obligations 1. STP centralised hub shall obtain a digital signature certificate from a Certifying Authority, which has been issued a license by the Controller of Certifying Authorities appointed under the Information Technology Act, 2000. A copy of the Certificate shall be submitted to STP service provider. 2. STP centralised hub acknowledges that STP infrastructure of the STP service provider is the legal property of STP service provider. The permission given by STP service provider to STP centralised hub's STP hub client software to co-locate on STP infrastructure will not convey any proprietary or ownership rights in the STP infrastructure. &nb....
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....sp; c. It will pass on only relevant information to be exchanged with the other STP service provider. d. It will not try to probe any other information available on the STP Service Providers setup. e. It will not try to modify, translate, disassemble, de-compile or reverse engineer the software to gain access to restricted information or create any derivative product based on STP service provider's system. E. Compliance with laws 1. Both the parties represent that they have taken all necessary corporate action to authorise the execution and consummation of this agreement and shall furnish satisfactory evidence of the same upon request to other party. 2. Both the parties hereto agree that they shall comply with all applicable Central, State and local laws, ordinances, regulations and codes in performing their obligations hereunder, including the procurement of licenses, permits and certificates and payment of taxes where required. 3. The parties shall fully inform themselves of all necessary obl....
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....stricted, delayed or interfered by reason of force majeure then notwithstanding anything hereinbefore contained, the party affected shall be excused from its performance to the extent such performance relates to such prevention, restriction, delay or interference and provided the party so affected uses its best efforts to remove such cause of non-performance and when removed the party shall continue performance with utmost urgency. For the purpose of this clause "Force Majeure" means and includes fire, explosion, cyclone, floods, war, revolution, blockage or embargo, any law, order, demands or requirements of any Government or statutory authority, strikes, which are not instigated for the purpose of avoiding obligations herein or any other circumstances beyond the control of the party affected. G. Amendment to the agreement The rights and obligations of the parties are governed only by this agreement. This agreement may be amended, altered, modified, varied or added to from time to time only by a written instrument duly signed by both the parties to this agreement. All previous communications, both oral and written between the parties and related to this agreement, but incons....
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....hall not preclude the other party from recourse to any other remedies available to itself by statute or otherwise, at law or in equity. 6. In order to maintain the security and integrity of its infrastructure STP service provider may also suspend the STP hub client software acces to its system at any time without notice. I. Notice Any notice to be given by one party to the other pursuant to this agreement shall be sent by registered post A.D., speed post or facsimile transmission to the address mentioned below : 1. ................. (Name of the STP centralised HUB) ....................(Address) 2. .............................(Name of STP service provider) .................................(Address) J. Waiver of rights No forbearance, delay or indulgence by any party in enforcing any of the provisions of this agreement shall prejudice or restrict the rights of that party nor shall any waiver of its rights operate as a waiver of any subsequent breach and no rights, powers, remedies herein conferred upon or reserved for the parties is e....
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....an through a breach of this Agreement or is unlawfully appropriated; (2) is already in the possession of the other party without any breach of this Agreement; (3) is obtained by the other party from a third party without any breach of this Agreement. (4) is required to be produced before a judicial authority and only where the other party is compelled to do so by such an authority, provided that the said authority (or individual representing such authority) has the authority, under the laws in force, to compel such disclosure. Notwithstanding the foregoing, before making any use or disclosure on any of the foregoing exceptions, the Party disclosing such information shall intimate the other party as soon as practicable the applicable exceptions (s) and circumstances giving rise thereto. Annexure STP centralised hub shall charge a fee of Rs. .................. The fees shall be charged to the sending service provider. The billing shall be on a .................... basis. One message shall mean and include the following- • One ISO message sent by a service provider to the STP centralised hub ....