DRAFTBBF Briefing (English)Upload of bank and client ledger/ fund

balances w.e.f. June 2020

02-Jun-2020Online | 4:30 pm

1

DRAFT

Uploading data

• Recent regulatory movement• Take more data of the members

• BBF stand/ requests• Take all data that you want, we have nothing to hide

• But minimize micro-management and give us more operationalleeway to run our business

• First request accepted☺

2

DRAFT

Background – fund data

• Circulars issued by all MIIs on 10-Feb-2020• Original due date was April 2020

• Postponed to June 2020

• Current deadline/ requirement• W.e.f. 01-Jun-2020

• First deadline 11-Jun-2020

• Penalties from 30-Jun-2020

• As per SEBI directive

• Chanced of further postponement is negligible

3

DRAFT

Notices/ circulars - BSE

• 10-Feb-2020• Notice Number 20200210-48

• File formats provided

• Expected w.e.f. 01-Jun-2020 as done by other exchanges

4

DRAFT

Notices/ circulars - MCX

• 10-Feb-2020• MCX/INSP/085/2020

• 20-Mar-2020• MCX/INSP/200/2020

• 28-May-2020• MCX/INSP/376/2020

5

DRAFT

Notices/ circulars - MSEI

• 10-Feb-2020• MSE/INSP/8652/2020

• 31-Mar-2020• MSE/INSP/8872/2020

• 28-May-2020• MSE/INSP/9052/2020

6

DRAFT

Notices/ circulars - NCDEX

• 10-Feb-2020• NCDEX/COMPLIANCE-007/2020

• NCDEX/COMPLIANCE-006/2020

• 23-Mar-2020• NCDEX/COMPLIANCE-018/2020

• 28-May-2020• NCDEX/COMPLIANCE-035/2020

7

DRAFT

Notices/ circulars - NSE

• May 27, 2020• NSE/INSP/44478

• March 23, 2020• NSE/INSP/43926

• February 10, 2020• NSE/INSP/43486

8

DRAFT

So what is to be done

• Two new fund uploads• Both once a week

• Upload 1 – Bank balance• For 6 days of the week (even if holiday)

• All banks as uploaded in SEBI ERBS

• Upload 2 – Client ledger balance• For all UCC registered clients

• Exception - Not traded in 12 months AND nil balance• MCX/ NCDEX have daily files (6 a week)

• BSE/ NSE/ MSE have consolidated files (1 a week)9

DRAFT

Not applicable on

• only proprietary trading and/or only trading for CustodianSettled clients• Give one-time declaration

10

DRAFT

To take care . . . 1

• Check the list of bank accounts uploaded• All should be there

• Even Nil balances

• Check the list of clients• All should be there

• Even if Nil (if have traded in last 12 months)

• Tally back office with UCC• Active/ Inactive status is UCC probably irrelevant

• MTF and non MTF balances to be mentioned separately

11

DRAFT

To take care . . . 2

• Apart from ledger balances, need to mention balances of:• Bank Guarantee (BG)

• Fixed deposit receipt (FDR)

• Government of India Securities (GSEC)

• Gilt funds

• Settlement• Last settlement date of Quarterly/ Monthly Settlement or NA

• Bank balance uploaded• To tally with weekly ERBG (G)

12

DRAFT

To take care . . . 3

• Remember• Weekly (G) and monthly upload continues

13

DRAFT

Formats

• Common format for bank balance reporting• 9 points

• Different format for client ledger balance reporting• NCDEX and MCX

• Merged format for securities and funds balance

• 14 points in the new one

• BSE, MSEI, NSE• Separate formats for funds and securities

• 13 points in the new funds upload

• Why ?14

DRAFT

FAQ – Which banks to report

• All the banks reported under ERBS• Not restricted to bank holding client fund (cash and cash

equivalent)

• PRO/ OWN accounts to be added (if uploaded to exchanges underERBS)

• Daily reconciliation for all bank accounts a good practice• At least weekly ?

15

DRAFT

Bank bal reporting – 9 points

• As per data uploaded under ERBS• 1 Bank Account No.• 2 IFSC• 3 Bank Account Type

• Date of balance• 4 Monday balance• 5 Tuesday balance• 6 Wednesday balance• 7 Thursday balance• 8 Friday balance• 9 Saturday balance

16

DRAFT

SE (BSE MSE NSE) – 13 points

• New format• Securities upload continue

• Funds upload begin

17

DRAFT

SE 1 Trading member PAN

• Your PAN

18

DRAFT

SE 2 Date

• Date of balance

• Six dates (six rows) per client• Monday to Saturday

19

DRAFT

SE 3 Unique Client Code

• UCC of client

• Multiple UCCs (e.g. NRI), multiple rows

• For PRO/ OWN• TM Code

20

DRAFT

SE 4 Client PAN

• PAN of client• Whatever is there in UCC

• In case of missing PAN• In NSE/ MSE/ BSE

• For dormant clients whose PAN is not available ABCDE1234F

• PAN exempt cases NNNNN1111N

21

DRAFT

SE 5 Client Name

• Name of client

22

DRAFT

SE 6 Segment Indicator

• Values shall be either of the following:• NON MTF

• MTF

• NON MTF means• All other segments other than MTF (like CM, FO, CD, CO, SLB and

DEBT)

• Separate rows for MTF• BSE/ NSE only

23

DRAFT

SE 7 Financial Ledger balance-A

• Balance as per ledger• Member books of accounts

• Net across all segments and exchanges

24

DRAFT

SE 8 Financial Ledger bal (clear)-B

• Net across all segments & Exchanges.

• After adjusting• Open bills of the client (i.e. other than settlement day billing)

• Un-cleared cheques

• Margin obligations debited in ledger• GSM – Not an open bill ?

25

DRAFT

SE 9 Bank Guarantee (BG)

• If client has marked BG in your favour• Remember, Third party Bank Guarantee (TPBG) is not allowed

26

DRAFT

SE 10 Fixed deposit receipt (FDR)

• If client has marked its own FD in your favour• Remember, Third party Fixed Deposit (TPFD) is not allowed

27

DRAFT

SE 11 Government of India Securities

• Constituent Subsidiary General Ledger (CSGL)• outside demat system with RBI

28

DRAFT

SE 12 Gilt funds

• Government Treasury bonds• Outside demat system

29

DRAFT

SE 13 Last settlement date

• Last settlement date of the respective client.

• In case settlement is not applicable (non-running accountcases)• Write “NA”

30

DRAFT

CE (MCX/ NCDEX) – 14 points

• Current monthly format used• Some nomenclature change

• Previously one file a month• Now six files a week

31

DRAFT

CE 1 Client Name

• Name of client

32

DRAFT

CE 2 Unique Client Code

• UCC of client

33

DRAFT

CE 3 Client PAN

• PAN of client

• In case of missing PAN• In NCDEX

• For dormant clients whose PAN is not available ABCDE1234F

• PAN exempt cases NNNNN1111N

• In MCX• As per UCC (whatever is in UCC)

34

DRAFT

CE 4 End of day Fund balance

• As per client ledger• Of that exchange only

35

DRAFT

CE 5 End of day Net funds

• Receivable/ payable• Across exchanges

• No adjustment of open bills/ positions ?

36

DRAFT

CE 6 End of day security balance

• Total number of ISINs• Breakup is a separate file

• Should tally

37

DRAFT

CE 7 End of day security balance

• Total quantity of securities• Breakup is a separate file

• Should tally

38

DRAFT

CE 8 Total number of ISINs pledged

39

• Pledge details to be entered• If pledged

DRAFT

CE 9 Total qty of securities pledged

• Pledge details to be entered• If pledged

40

DRAFT

CE 10 Funds raised from pledging

• Provide amount, if any

41

DRAFT

CE 11 End of day commodity bal

• No. of commodities• No breakup data as of yet

42

DRAFT

CE 12 No. of comm pledged

43

• Pledge details to be entered• If pledged

DRAFT

CE 13 Funds raised from pledging

• Provide amount if any

44

DRAFT

CE 14 Last Balance Sett Date

• As per back office• 30 days/ 90 days

• For non-running account, NA not allowed• MCX

• Blank date in new accounts

• Some date in NCDEX

45

DRAFT

Deadline(s) revisited

• Starts from 01-Jun-2020

• First uploads for week ended 6-Jun-2020• Due date 11-Jun-2020

• Can do earlier

• No penalty till 30-Jun-2020• But we have to upload from 01-Jun

• Penalty norms still to be declared

46

DRAFTQ&A – Please type

47