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1.3.1 1.3.2 1.3.3 1.3.4

CONTENT ................................................................................................................................ PAGE NO.S LIST OF ABBREVIATIONS ............................................................................................. CHAPTER ........................5 1.................................................................................................................................. TRADING....................................................................................................................................... ..................7 .................7 INTRODUCTI .................................................................................................. O .................. 7 NEAT SYSTEM ...................................................................................................... N .................. 9 MARKET TYPES .................................................................................................... .................. 9 Normal Market .......................................................................................... Odd Lot ...........................9 Market.......................................................................................... Retdebt ..........................9 Market .......................................................................................... Auction .........................10 ............................................................................ Market.......................................................................................... CORPORATE HIERARCHY .........................10 ..................10 LOCAL DATABASE ............................................................................................

.................11 MARKET PHASES ............................................................................................... .................11 1.6.1 Opening................................................................................................................ ................11 1.6.2 Open Phase ............................................................................................. 1.6.3 Market ............................11 Close.............................................................................................. 1.6.4 Surcon.................................................................................................................. .........................12 ................12 LO GGING ........................................................................................................ ................12 LOG OFF/EXITFROMTHE APPLICATI ........................................... O ...................1 NEAT SCREEN ..................................................................................................... N 4 .................15............................................................ 1.10 INVOKING INQUIRY SCREEN ..................16 1.10.1 Market Watch........................................................................................ 1.10.2 Security .........................16 Descriptor................................................................................ 1.10.3 Market by ........................18 Price......................................................................................... 1.10.4 Previous Trades ...................................................................................... 1.10.5 Outstanding .....................19 .......................20 Orders ...................................................................................... 1.10.6 Activity .................21 Log............................................................................................ 1.10.7 Order .........................21 Status......................................................................................... 1.10.8 Snap ...........................22 Quote......................................................................................... 1.10.9 Market .............................23 Movement................................................................................ 1.10.10 Market ..........................24 Inquiry....................................................................................... 1.10.11 Auction .........................24 Inquiry...................................................................................... 1.10.12 Security/Portfolio .........................25 List......................................................................................... 1.10.13 Multiple Index Broadcast and ..........26 Graph.........................................................................26 1.10.14 Online 1.10.15 1.10.16 1.10.17 1.11 1.11.1 1.11.2 1.11.3 1.11.4 1.12 1.12.1 TRADE ORDER Backup...................................................................................... Basket ..........................27 Trading.................................................................................... Buy Back ...........................27 Trades...................................................................................... Supplementary ......................28 Functions............................................................................... MANAGEME .................................................................................. ..............29 N .................42 Entering T Orders ...................................................................................... Order .......................42 Modification............................................................................ Order ............................49 Cancellation........................................................................... Order ............................49 Matching................................................................................... MANAGEME ................................................................................... ...........................50 N .................53 Trade T Cancellation............................................................................ ............................54

1.13

............................................................................................................... ................54 1.13.1 Entering Auction Orders .................................................................................... 1.13.2 Auction Order ..........55 Modification.......................................................................... 1.13.3 Auction Order ...............56 Cancellation.......................................................................... 1.13.4 Auction Order ...............56 Matching................................................................................. 1.14 LIMITED PHYSICAL MARKET ................................................................... ..............57 ..................57 1.15 RETDEBT MARKET (RDM) ......................................................................... ..................57 MEMBERS 1.16 TRADING INFORMATI DOWNLOAD TRADING ....60 E 1.17 INTERNET BROKING O .................................................................................... N D .................63 Model Questions........................................................................................................ CHAPTER ..........................63 2.................................................................................................................................. CLEARING................66 AND SETTLEMENT ................................................................................................. INTRODUCTI ............................................................................................... .......66 O Transaction .................66 2.1.1 N Settlement Cycle............................................................................................ 2.1.2 Process ........................................................................................ 2.1.3 Settlement ..................67 .....................68 Agencies ...................................................................................... 2.1.4 Risks in .....................69 Settlement .................................................................................... SETTLEME CYCLE ........................................................................................ .........................72 N .................73 SECURITIES SETTLEME ......................................................................... T N ..................77 FUNDS SETTLEME ...................................................................................... T N .................79 SHORTAGES HANDLING .............................................................................. T ..................81 2.5.1 Valuation 2.5.2 Close-out Prices............................................................................................ .....................82 Procedures.................................................................................. RISK CONTAINME MEASURES .......................................................... ......................82 N ...................86 2.6.1 Capital Adequacy T Requirements ............................................................................ 2.6.2 Margins................................................................................................................ .........86 ................88 2.6.3 On-Line Exposure 2.6.4 2.6.6 2.6.7 Monitoring................................................................................. Off-line ........97 Monitoring................................................................................... 2.6.5 Index-based Market -wide Circuit Breakers/ Price Bands for Securities.................98 Settlement .........................97 Guarantee Mechanism................................................................................ No-delivery ...99 Period.......................................................................................... INTERNATION SECURITIES IDENTIFICATI NUMBER .........................1 ............... 100 O 00 DEMAT AND AL ELECTRONI TRANSFER SECURITIES .................................1 N C 01 INVESTOR PROTECTIO FUND ................................................................... N DATA AND ................103......................1 CLEARING SOFTWARE REPORTS DOWNLOAD 0 Obligation Custodial Reports .................................................................................... 4 Trade ................. 104 Reports................................................................................... Deliveries ......... 105 Reports ................................................................................... Receipts .................. 106 Reports.................................................................................... Bad Deliveries ..................... 106 Reports ................................................................................... Funds ........... 107 Reports...................................................................................... Auction Reports..................................................................................... Objections ........................ 107 ...................... 108 Reports .................................................................................... Margin Reports..................................................................................... Securities ................. 108 ...................... 110 Reports.................................................................................... Miscellaneous ................... 111 Reports.................................................................................... TRANSFER PROTOCOL .................................................................... ........... 111 ................112

AUCTION

2.10

2.10.1 2.10.2 2.10.3 2.10.4 2.10.5 2.10.6 2.10.7 2.10.8 2.10.9 2.10.10 2.10.11 2.11 FILE

Model CHAPTER questions......................................................................................................... ....................... 112 3..................................................................................................................................

3.1.1 3.1.2

3.3.1. 3.3.2 3.3.4 3.3.5 3.3.6 3.3.7 3.3.8 3.3.9 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.4.6

TRADING ............. 115 MEMBERSHIP.................................................................................................... STOCK BROKERS 115 .............................................................................................. ............... ...............115 Introduction......................................................................................................... Membership ............. 115 in NSE.............................................................................................. SUB- BROKERS ................................................................................................... .......... 116 ...............154 BROKER- CLIENTS RELATIONS ................................................................ ................157 Know your client ........................................................................................... Unique Client ................ 157 Code........................................................................................... 3.3.3 Margins from the ............ 158 Clients .............................................................................................. 158 of Execution Orders .......................................................................................... Contract .............. Note............................................................................................... Payments/Delivery 158 of Securities to the .................... 159 Clients.......................................................... 160 Brokerage............................................................................................................ Segregation ............. 160 of Bank Segregation Accounts .................................................................................... of Demat (Beneficiary) .. RELATIONS 160 Accounts........................................................... 160 SUB....................................................

4.10 4.11

B .................161 SubR ........................................................................................................ Registration broker............................................................................................. O .............. 161 Relationship ........................... 161 with K clients/role................................................................................. Contract E Securities/ ....... 161 R notes.............................................................................................. Funds............................................................................................ Sub- .................... 162 162 brokerage ...................................................................................... C .................APPEAL DISPUTE, ARBITRATI AND ............................................... ........................... 162 LO .................162 CODE ADVERTISEM ....................................................................... IEN N ................164 Model E T Questions........................................................................................................ N CHAPTER ....................... 166 T 4.................................................................................................................................. LEGAL ............. 168 S FRAMEWORK .................................................................................................... SECURITIES .................... 168 CONTRACTS (REGULATI ACT, 1956 .................................1 O 73 SECURITIES CONTRACTS (REGULATI RULES,1957 ...........................1 N 76 SECURITIES AND EXCHANGE BOARD O INDIA ACT, 1992 ....................176 ) N SEBI (STOCK BROKERS SUB-BROKERS) REGULATIO 1992 .......180 ) N SEBI (PROHIBITI INSIDER TRADING) REGULATIO 1992 ...186 S SEBI (PROHIBITI O FRADULENT AND UNFAIR TRADE N PRACTICES , S N O RELATING SECURITIES MARKETS) REGULATIO 2003 ...............................1 , N ACT, 1996 N 90 THE DEPOSITOR ................................................................ S I ACT, 1872 ................193 INDIAN CONTRACT ................................................................. , E ................195 THE COMPANIESACT, 1956 ....................................................................... S ................197 INCOME TAX ACT, 1961 ............................................................................... ................200 MONEY LAUNDERI ACT, 2002 ............................................................ N ................203 Model G questions......................................................................................................... CHAPTER ....................... 205 5.................................................................................................................................. AN OVERVIEW OF THE INDIAN SECURITIES ............. 208 MARKET................................................... 208

5.2.1 5.2.2

5.6.1 5.6.2

6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.1.9 6.1.10 6.1.11 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.3.1 6.3.2 6.3.3 6.3.4 6.4.1 6.4.2 6.4.3 6.4.4

INTRODUCTI ................................................................................................. O ...............208 MARKET SEGMENTS ........................................................................................ N Primary ...............208 Secondary Market.......................................................................................... ..................... 208 Market PRODUCTS AND PARTICIPA .......................................................................................... ............................................................. ................. 209 N ................211 DERIVATIV MARKET .................................................................................. T ...............212 PROFILE E ............................................................................................................... S S INDIAN SECURITIES..............212 REFORMS MARKETS ................................ ........... Corporate Securities .......21 Government Market........................................................................................ Securities 3 . Market ..................................................................................... RESEARCH SECURITIES 213 MARKETS .................................................. 217 .................219 TESTING AND CERTIFICATI .................................................................. O ................219 Model N Questions........................................................................................................ CHAPTER ....................... 219 6.................................................................................................................................. FUNDAMENTAL 221 VALUATION ............. CONCEPTS ............................................................................... 221 ELEMENTA STATISTICA CONCEPTS ............................................ R Mean..................................................................................................................... L .................221 Y Geometric ............. 221 Mean............................................................................................. Return and ................. 221 Risk ............................................................................................... Standard Deviation of Return....................................................................................... of Co-efficient ................ 222 224 variation ..................................................................................... Covariance.......................................................................................................... ............. 225 Correlation ............ 225 Coefficient .................................................................................. Normal Distribution................................................................................. Calculation ................ 226 of Beta ...................... 227 ()................................................................................................ Relationship between Return and ... 227 and Risk......................................................................... 229 Return Risk of a portfolio..................................................................................... UNDERSTANDI FINANCIAL STATEMEN ................................ .. 230 NGBalance T ........... S .......23 Sheet.............................................................................................. Profit and Loss 3 ..................... 233 Comparative Account....................................................................................... Financial .......... 235 Statements.............................................................................. Common Size 235 Statements.................................................................................. Ratio Analysis......................................................................................... MONEY ............. 235 ................................................................................. ......................... 236 ...............242 Future Value of a Single Cash

TIME

VALUE

Flow............................................................................ 242 an Future Value of Annuity....................................................................................... Present Value of a Single Cash .... 243 Flow .......................................................................... 244 an Present Value of Annuity....................................................................................... EQUITY RESEARCH .......................................................................................... ... 245 ...............245 Bhav Copy Database...................................................................................... Index ................ 246 Database....................................................................................... Order Book Snapshots ......................... 246 Database ................................................................................. Trades 246 Database ...................................................................................... Model ....................... 247 Questions........................................................................................................ MODEL ....................... 247 TEST............................................................. .......................248

B/G

of Abbrev ABC Additional Base Bank Guarantee iations Capital BMC BaseBSE

List

Mini Bombay mum Stock CDSL Central Depositories Capit Exchan Ltd. Services CM Capital Market al ge Co. Company DCA Department of Company DEA Department of Affairs Economic DP Affairs De DPG Dominant pos Promoter DQ itor Group D DvP Delivery y i versus FDR Fixed Par s Paymen tici FI Financial Institution Dep c t osit panForeign FII l Rec t Institution o F&O Futures eipt al s an FTP File Investors e d Tra IFSD Interest Free d Op nsf Security IOC tio er Deposit Im Q IPF Investor ns Pro me u Prote ISIN International Securities toc dia a Identification Number ol LTP Last Trade Price ction te n Fund MBP Market By Price t or Ca i MRC Membership nce t Recommendation MTM Mark To Market l y Committee NSE National Stock NSCCL National Securities Clearing Exchan Securities Corporation Limited NSDL National ge Depository Ltd. OTC Over T National Exchange for NEAT hNSE's Certification in Automated Trading NCFM e Financial Markets NSCCL National Securities Clearing Corporation Ltd. RBI Reserve C Ban o RDM Retail k of u DSecurities SAT Indi n e Appellate SBTS Screen Based a t bt Tribunal Trading SC(R)A Securities Contracts e M System (Regulation) Act, 1956 r SC(R)R Securities Contracts (Regulation) ar Rules, and k SEBI Securities1957 Exchange et Board of India SGF Settlement SRO SelfGuarante Regulatory e Fundfrom the Organisatio T+2 Second day n TM Trading Member trading day

VaR

UTI Unit T Value at Risk r Very Small VSAT Aperture u WDM Wholesale Terminal s Debt Market and References t

The suggested and would prove to be helpful for supplementary in nature o readings those interested in acquiring advanced knowledge about f Capital Markets.

readings suggest ed here are

Indian ISecurities Market: A Review - NSEIL publication NSE Newsletters n SC(R)A, 1956 & Rules d SEBI i Act, 1992, Depository Rules & Act, a Regulati 1996 Rules, Regulations and Byelaws of ons & NSEIL & NSCCL www.nseindia.c Rules om www.sebi.gov www.rbi.org.i. ni www.finmin.ni n c.i n Distribution of weights of the Capital Market (Dealers) Module Curriculum Chapter No. Title Weights (%) 1 Trading 30 Clearing and Settle 3 Trading ment Me 25 4 Legal Framework 15 mb ers hip 5 An Overview of the Indian 20 Securities Market 5 6 Fundamental Valuation Concepts 5 2

Note: while

Candidates are advised to refer to NSEs website: www.nseindia.com preparing for NCFM test(s) for announcements pertaining to revisions/updations in NCFM modules or launch of new modules, if any.

CHAPTER 1 TRADIN G1.1 INTROD UCTION The trading on stock exchanges in India used to take placethrough open outcry without use of information technology for immediate recording of matching or was time consuming and inefficient. trades. This This imposed limits on trading volumes and efficiency. In order to provide liquidity andefficiency, transparency, NSE introduced a nationwidebased trading -system (SBTS) where a member automated screen on-line fully can quantities of securities and the prices at which into the computerpunch transact and he likes to the transaction is executed as soon as it finds a matching sale or buy order from a count er party. SBTS electronically matches orders on hence price/time priority and a strictcuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It incorporationallowsprice sensitive informatio n into of faster prevailing prices, thus increasing the informational efficiency of markets. It participants, enables market their geographical locations, to irrespective of trade with one another simultaneously, improving the depth and liquidity provides fullof the market. It accepting orders, big or small, anonymity by from members without revealing their identity, thus providing equal access to also provideseverybody. It trail, which helps to resolve disputes a perfect audit by logging cess in entirety. This sucked liquidity in the trade execution pro from other exchanges and in the very first year of its operation, NSE became the in the stock exchange leading country, impacting the fortunes of other forcing them exchangesSBTS also. Today India can boast that to adopt and trading takealmost 100% place through electronic order matching. Technology was used to carry the trading platform from the trading the premises of brokers. NSE carried the stock exchanges to hall of trading platform further to the PCs at the residence of investors through the Internet and to handheld devices through WAP for convenience of mobile made a hugeinvestors. This terms of equal access to difference in investors in a geographically vast country The trading like network is depicted in Figure 1.1. NSE has main India. computer Very Small Aperture Terminal (VSAT) is connected through which installed at its office. The main computer runs on a fault tolerant STRATUS mainframe computer at the Exchange. Brokers have terminals (identified as the installed at their premises which are the Figure 1.1)PCs in connected through VSATs/leased line s/m ode ms.

Figure SATELLITE

1.1: Tradi ng Netw ork

IN SAT - 2 B

AN TE NN A

Mainfra m eNSE MAINFRAME Broker's premises

An investor informs a broker to place an order on his behalf. The broker enters the order through his PC, which runs under Windows NT and sends signal to the Satellite via VSAT/leased line/modem. The signal is mainframe directed to at NSE via VSAT at NSE's office. A computer messageis broadcast to the respective the order activity relating to confirmation member. The order message is immediately displayed on the PC of the broker. the existing passive order(s), otherwise it order matches with This active orders waits forthe system. On order matching, a message is to enter the broadcast the r The trading e system operates on a strict price time priority. All s orders received on the system are sorted with the best priced order getting the p for matching first priority buy orders match with the best sell ei.e., the best order. Similar priced orderscare sorted on time priority basis, i.e. the one that came the later one. Orders are matched gets priority t over in early i automatically by the computer keeping the system transparent, objective and fair. v Where an order e to m e m b e r .

does not find a match, it remains in the system and is displayed to market, till a the whole comes in or the earlier order is fresh order cancelled system provides tremendous flexibility to modified. The trading or the users in terms of kinds of orders that can be placed on the system. Several time related (immediate or cancel), price-related (buy/sell limit and stop loss orders) or volume related (Disclosed Quantity) conditions can be easily built into an order. The trading system also provides complete market information on-line. The market screens at any point of time provide complete information on total order depth in a security, the five best buys and sells available in the market, the quantity traded during the day in that security, the high and the low, the last traded price, etc. Investors can also know the fate of the orders almost as soon as they are placed with the trading members. Thus the an Open Electronic Consolidated Limit Order system provides NEAT Book (OECLOB). Limit orders are orders to buy or sell shares at a stated quantity and quantity price. If the price stated conditions do not match, the limit order will not be executed. The term limit order book refers to the fact that only are stored inlimit orders and all market orders are crossed the book againstbook. Since the order book is visible to orders sitting in the the limit participants, all is termed as an it market Open Book.

NEAT SY ST The NEAT system supports an order driven market, wherein orders match on the basis of time and price priority. All quantity fields are in units EMare quoted inand prices Indian Rupees. The regular lot size and tick size for various securities traded is notified by the Exchange from time to time.

1.2

1.3

MARKET TYPES

The Capital Market system has four types of market.

1.3.1 Normal Mar ket Normal market consists of various book types wherein orders aresegregated as Regular Lot Orders, Special Term Orders, Negotiated Trade Orders depending on their Stop Loss Orders and order attributes.

1.3.2 Odd Lot Mark The odd lot et market(1.14).

facility is used for the Limited Physical Market. The Physical Market are detailed in a features of the Limited main separate section

1.3.3 Retdebt Mar The RETDEBT market facility ket market segment

on the NEAT system of capital is used for transactions in Retail Debt Market session. Trading in Market takesRetail Detail same manner as in equities place in the (capital market) of this market are detailed in a segment. The main features separate section (1.15) on RE TD EB 1.3.4 Auction T Mark mar In the Auction market, auctions are initiated by the Exchange et ket. on behalf settlement related reasons. The main trading members for of features a separate section (1.13) market are detailed inof this on auction.

1.4

CORPORATE HIERARCHYcomprises: Corporate Manager

The trading member has the facility of defining a hierarchy of the NEAT amongst This hierarchy system. its users

Branch

1 Bran ch 2 Dealer 12 Dealer 22 Dealer 21

Dealer 11

The users of the trading system can logon as either of the significance user type. The of each type is explained below: Corporate Manager: The corporate manager is a term assigned to a user placed at the highest level in a trading firm. Such a user receives the End of Day reports for all branches of the trading member. The facility to Order Value set Branch User Order Value Limits is available to Limits and the corporate manager. Corporate Manager can view outstanding order and trade of all users of the trading member. He can cancel/modify outstanding order of all the tra di Branch Manager: The branch manager is a term assigned to a ng placed underme corporate manager. user who is manager the The branch receives End of m be r. user of

Day reports for all the dealers under that branch. The branch manager limit set user order value can for each of his branch. Branch Manager trade of outstanding order and can view all users of his branch. He can cancel/modify outstanding order of all user of his branch. Dealer: Dealers are users at the lower most level of the hierarchy. A dealer can view and perform order and trade related activities only for oneself and does not have access to information on other dealers under either the same branch or o t h 1.5 eLOCAL r DATAB b ASE The Local Database provides faster response time to users. All r inquiries made by a user for aown orders/trades are serviced through the local n database. manager/branch manager makes inquiries however, a corporate If c orders of for any dealer/branch manager of the trading firm, then the inquiry is h the host. The serviced by in the local database include system data stored e messages, s information and order/trade related data security related . the user. of

1.6 MARKET PHAS ES The system is normally made available for trading on alldays except Saturdays, Sundays and other holidays. Holidays are declared time. exchange from time toby the A trading day typically consists of a number discrete stages as ofexplained in the subsequent section.

1.6.1 OpeningThe trading member can carry out the following activities after login before NEAT system and to the the market opens for trading: (i) Set up Market Watch (the securities which the user would on the screen) like to view (ii) Viewing Inqu At the point of time when the market is opening for trading, iry trading the member cannot login to the system. A message Market status is scre Cannot logonchanging. for ens. sometime is displayed. If the member is already logged in, trading activities till he cannot perform market is opened.

1.6.2 O The open period indicates the commencement of trading p activity.aTo signifyis sent to all the trader the start of trading, message e workstations. The ma rket open time for different markets is notified by n Exchange to all the P h a s e

the

trading members. Order entry is allowed when all the securities have been opened. During this phase, orders are matched on a continuous basis. Trading in all the instruments is allowed unless they are specifically prohibited by the exchange. The activities that are allowed at this stage are Inquiry, Order Entry, Order Modification, Order Cancellation cancellation) (including quick order trade Order Matching and cancellation.

1.6.3 M When the market closes, trading in all instruments for that ar marketto this effect is sent to all trading members. an end. A message comes to ket No further orders are accepted, but the user is permitted to perform Cl activities inquiries and trade like os cancell e ation. 1.6.4 SurconSurveillance and Control (SURCON) is that period after market close have which, the users duringinquiry access only. After the end of SURCON period, the system processes the data for making the system available for the next trading day. When the system starts processing data, the interactive connection with the NEAT system is lost and the message to displayed at that effect is the trader workstatio n.

1.7detail: a) User ID b) Trading Member ID c) Password d) New Password In order to sign on to the system, the user must specify a valid User ID, Trading Member ID and the corresponding password. A valid system. a) User ID Each trading member can have more than one user. The number of users allowed for each trading member is notified by the Exchange from time to combination of User ID, Trading Member ID and the password is needed to access the

LOGG ING On starting NEAT application, the logon scre en appears with the following ON

combination.

time. Each user of a trading member must be registered with the exchange and is assigned an unique user id. b) Trading M e The Exchange assigns a trading member id to each trading m member. The trading member id is unique and functions as a reference for all b orders/trades of different users. This id is common for all the users of a e particular member r member. The trading trading id and user ids form a unique and valid I D It is the responsibility of the trading member to maintain adequate control over the persons having access to user ids. The trading member should request the Exchange for changes in user id user names especially users there are changes in thewhen who are dealing on behalf of the trading

member.

c) Password When a user logs in for the first time, he has to enter the default by the Exchange. On entering this password, 'NEATCM' providedpassword requests the the systementer a new password in the `New user to Password' field.the system requests for confirmation entering the new password, On of new password is known to password. This this new the user only. The password should contain minimum of six characters and maximum of eight characters in length. A combination of characters and numbers is allowed in the password. The password can be changed if the user desires can and a new passwordso be entered. The new password must from the oldbe different Password appears in the encrypted password. form is maintained. The system ensures the change complete secrecy and thus in password for all users (password expiry period is parameterised by the Exchange). The user can logon by entering a new password as per the procedure the user above. In the event ofoutlined forgetting his password, the is required totrading member inform the Exchange in writing with a request to user password is reset to the default password. Thereset the password set by the Exchange. The user can log on, on entering a new password procedure as per the o u If three attempts are made by a user to log on with an incorrect tl password, then that user is automatically disabled. In case of such an i event, the trading member makes a written request to the exchange for resetting of n password. e The user password is reset to the default password set by the Exchange. The user can logd on, on by entering a new password as per the a procedure outlined b o v e .

above.

Earlier, it was possible for the members having VSATs at more than one location to use the allotted user ids interchangeably from gives rise to either location. This various systems security related problems. To reduce such with the members workstation, potential risks associated assigns user the Exchange id to a specific location. On account of it, whenever a trader workstation, the system checks attempts to log on to the user for valid location for that auser id in the database at the host end. In case there is a mismatch between the user id and corresponding VSAT id, the message is flashed on the log on screen, You are trying to sign on from a different location. Sign on is not allowed. Members connected through up modems are also checked for the local lines, high speed dial leased their trading address of and the corresponding user ids. In terminals casethe mismatch You are trying to sign on from between the two of message a on is not location. Sign differe nt allowed is flashed on the log on screen. Members maybe allowed logging in from different VSAT ids only on specific be verified by the Exchange with requests, which maywritten reference to the problem specified.

1.8

LOG OFF/EXIT FROM THE APPLICATION

the user: a) Permanent sign off, b)

One can exit from the application as and when one desires before the surcon period. On invoking the log off screen, the following options are displayed to

Temporary sig c) Exit n off a) Permanent Sign Off , an As the name d suggests, a user can log off permanently from the trading system by selecting this option. The user is logged off and the log on screen appears. b) T e Temporary sign off is a useful feature that allows the user to m disallow the use of the trading software without actually logging off. During a p temporary signoff period, the application continues to receive all market o r background. updates in the user cannot enter orders or make However, the a to leave the trading system temporarily inactive inquiries. This allo ws the user r unauthorized and prevents system. On selecting the yaccess to the temporary sign off option, a password entry screen is displayed. The use of the NEAT system is S enabled on entering the correct password. The temporary sign off is automaticallyi activated when the user is inactive for a g period of 5 minutes. n O f f

The user has to enter the password to resume activities. If three attempts are made to sign on with an incorrect password, the user is permanently logged off. In this case the user has to log on again. c) Exit On selection of this option, the user comes out of sign off screen.

1.9 NEAT S C The Trader Workstation screen of the trading member is divided into the following windows: R E (a) Title bar: It displays trading system name i.e. NEAT, the E date and the current time. N(b) Ticker Window: The ticker displays information of all trades has system as and when it takes place. The userin the selecting the the option of should appear in the ticker. securities that ticker can beSecurities for each market type. On the selected in extremethe on-line index window that displays hand of the ticker is right the current index value of NSE indices namely S&P CNX Nifty, S&P CNX Nifty Junior,Defty, CNX S&P CNX500, CNX Midcap, CNX IT, Bank Nifty, CNX 100 user can scroll within these and Nifty Midcap 50. The indices and view the index values respectively. Index point change with reference to the previous close is displayed along with the current index value. the difference between Theprevious close index value and the current index value becomes zero when the Nifty closing index is computed for The ticker window displays securities capital market segments. is ticker selection facilityTheconfined to the securities of capital first ticker window, by default, segment only. The market displays traded derivatives contracts all the in the Futures and Options segment. (c) Tool Bar : The toolbar has functional buttons which can be used with the mouse for quick access to various functions such as Buy Entry, Entry, Sell Order Order Market By Price (MBP), Previous Trades (PT), Outstanding Order (OO), Activity Log (AL), Order Status (OS), Market Watch (MW), Snap Quote (SQ), Market Movement (MM), Market Inq uiry (MI), Auction Inquiry (AI), Order Modification Cancellation (OM), Order (OCXL), Security List, Net Position, Online Backup, Supplementary Menu, Index Inquiry, Index Broadcast accessible through the these functions are also and Help. All keyboard.

the day.

(d)

Market : The Market Watch window is of Wat for a trading member. This screen allowsthe main area focus continuous ch monitoring of the securities that are of specific interest to the user. It Win displays trading information for the dow selected securities. This screen enables the user to view information such as Market By Price (MBP), Previous Trades (PT), Outstanding Orders (OO), Activity Log (AL) and so on. Relevant information for the selected security can be viewedThe snap quote feature allows a trading . member desired instantaneous market information on any to get security. This is normally used for securities that are not already set in the Market Watch window. The information presented is the same as that of the

(e) Inquiry Window:

(f) Snap Quote:

Marker Watch window. (g)

This window Or enter/modify/cancel orders and for also to send enables der the cancellation request for trade /Tr user to a ad n (h) Message Window e : This enables the user to view d messages market Wi Exchange such as corporate actions, anybroadcast by the m nd informationauctions other messages like order news, etc. and related o ow confirmation, d order modification, order cancellation, orders which : i have resulted in quantity freezes/price freezes and the Exchange action on f trade confirmation,them,trade cancellation/modification i requests and time when action on them, nameand Exchange the user logs in/logs c off a from the system, messages specific to the trading member, ti These etc. messages appear as and when the event takes place in a o chronological order. n .

1.10 INVOKING AN INQUIRY SCREENAll Inquiry screens have a selection where the security viewed can be selected. The screen shows the details of the security inquiry. The selected for that inquiry screens are discussed details for each further in this

chapter.

1.10.1 Mar ket The Market Watch window is the third window from the top of the screen that Wat is always visible to the user. The Market Watch is the focal area for users. Watch is to setup and view trading details of purpose of Market The chsecurities that are of interest to users. For each security in the Market information Watch, market is dynamicall y updated.

Market Information The one line market information Display in the market watch screen is for current best price orders available each ed: Regular Lot book. For in thesecurity the following information is displayed displayed: a) the corporate action indicator b) the total "Ex/Cum" quantity available at buy order best buy price c) best buy price d) best sell price e) total sell order quantity available at best sell price f) the last traded price g) the last trade price change h) the no indicator and delivery period indicator "ND" If the security is suspended, 'SUSPENDED appears in front of the security. If a question mark (?) appears on the extreme right hand corner for a security, it indicates that the information being displayed is not the latest will the and system dynamic ally Information Update: In the Market Watch screen, changes in update it. the best pages and quantities are highlighted on a dynamic basis (in all price of Market Watch). For example, if the best price changes as a result of a the market, new new details are immediately displayed. The the order in changed details are highlighted with a change of colour for a few seconds to change has signify that a The blue colour indicates that occurred. price/quantities have improved, while the red colour indicates that the worsened. price/quantities have If the last traded price is better than the previous last traded price then if indicator `+' appears orthe the last traded price is worse than the previous last traded price then the indicator `-' appears. If there is no change traded price, in the last no indicator is displayed. The list of securities that are available for trading on Capital Market segment is available in the Security List box. The user has the option to setup securities directly from the Security List without typing a single character on the market watch screen. This is a quick facility to setup securities. tries to setup If security which is already present in the market a the user watch one security is already setup. The user gets a message that the also has the option to add and delete the security set up in the market watch screen The many times as one desires.as user can print the contents of Watch setup the Market by the user. The user can either print the Market Watch on display or the Full Market Watch. Market Watch A user has to set up securities Do software. After setting up the market watch, it the first after is download of the w suggested that the user should log out normally. This will help the user nl save the to freshly set up market watch securities in a file. If at any given oa time, when the user has freshly set up a few securities and encounters an d: abnormal exit, the

newly set up securities are not saved and the user may have to repeat the process of setting up securities. The Market Watch setup is carried over to subsequent days, thus averting the need to set up the Market basis. DuringWatch on daily the relevant Market Watch the logon stage, details are downloaded from the trading system. The message displayed is `Market Watch download is in progress'. The time taken for the Market on the number of download depends Watch securities set up. Special Features of Market Watch screen a) One of the best features of this software is that the user to the facility hasset up 500 securities in the market watch. The user can securities in one page of the up a maximum of 30set market watch screen. b) The details of the current position in the Market Watch defaults screen order entry in the and the inquiry selection screen. It is therefore possible to do quick order entries and inquiries using this feature. The default details can also be c) Market Watch setup overwritten. can be sorted alphabetically. An indicator for corporate actions for a security is another feature indicators are market watch. Thein as follows: 'XD' - ex-dividend 'XB' - ex-bonus d) 'XI' - ex-interest 'XR' - ex-rights 'CD' - cum-dividend 'CR' - cum-rights 'CB' - cum-bonus 'CI' - cum-interest 'C*' - in case of more than one of CD, 'X*' - in caseCR,more CI one of XD, of CB, than e) The ex indicator in XR, XB, XI watch screen appears till the market the endperiod in which the security goes ex of no delivery security goes benefit. In case, a having any no delivery ex benefit without period, ex indicator is displayed only on the ex day.

1.10.2 Secu rity The following information is displayed in the Security Descriptor Security Desc Name, Book -Closure Start and End Dates, Ex- Date, No - Delivery Start Rating and Remarks. The label DPR i.e. Daily Dates, Tick Size, and End ripto Price Range displays the permissible price band for a security for the current rtrading day.

by Price (MBP) is to enable the user in the outstanding ordersto viewmarket aggregated at each price and are displayed in order of best prices. The fields that are available on the selection screen are Symbol, Book Type. Seriesoptions available in the book type field are The and Regular Lot and RETDEBT. The detailed MBP screen is split into First Line, Detail Line and Summary Market Type, Symbol, Series, Total The first line displaysLine. Traded Quantity, Highest Trade Price, Lowest Trade Price, Last Trade Price, % Change in LTP from Previous Day Close and Average Traded Price. The detail line displays Number of Buy Orders, Total Buy Order Quantity at that price, Buy Order Price, Sell Order Price, Total Sell Order Quantity at that price and Sell Orders. Number of The summary line displays Total Buy Order Quantity For Total term orders, the terms are not Sell Order Quantity. and special MBP screen.reflected in the displa yed on the left side of the Buy orders are window and sell orders on the right. The orders appear in a price/time priority with the top. When any Regular Lot priced" order atthe "best displayed on information, currently (for example as the result the window, is changed of a is automatically reflected in the MBP i.e. this information trade), MBP screen is present. dynamic updation of All buyback orders are identified by an * in the MBP screen. In in the buyback order appears case a best orders in the MBP an * will precede such an order record. In addition, an * will appear against the Total Buy field buyback order price is among the best five the MBP. Similarly if ain prices in appear against the appropriate price and order book an * will the Total Buy also inIn case a buyback order is present in the field. the screen. order the MBP, does not appear in book but an * will precede the Total Buy field in the MBP Special F e 1) Regular lot & special term orders can be viewed a in of a security is indicated in this screen. 'P' 2) The status the MBP. t indicates that pre security is in the the -open phase and 'S' indicates that the u security is r suspended. e 3) The percentage change for last trade price with respect s to closing day's previous price and the average trade price of the o given market security additional fields in are the in the f the screen. M 4) No untriggered stop-loss order will be displayed on the B MBP the best 5) Only orders for screen. 5 prices, information is P displayed.

Market by The purpose of Market Price

1.10.3

1.10.4 Previous Trade The purpose of this window s information to users

is to provide security-wise for own trades. The fields that are available on the selection screen are Symbol, Series, Market type, Auction Number, Trading Member Id, Dealer, CLI Branch Id, The options available in the Market and Time. type RETDEBT, Odd Lot Normal Market, field are and Auction. to view Auction Market trade details, the auction compulsorily number has to Corporate Manager can view all entered. The be the a specific branch. Under the specific branch, the branches or for trades for all trade details useracan view dealer or for all dealers. The Branch for specific Manager can branch i.e. all previous trades for all view all details under that all clients ordealers and for or for a specific dealer. The for all dealers dealer own user previous trades for can view id only. The user can select the previous period, up to a particular time trades by entering the relevant time in the time field. The detailed Previous Trade screen information is split into First Line, Detail Line and Summary Line. The first line displays Market Type, Symbol, Trade Last Trade Price, LastSeries, Quantity, Last Trade Time and Total Traded Quantity. The detail line contains Buy/Sell Indicator, PRO /CLI indicator (where P PRO and C - CLI), Order Number, Trade Number, Trade Quantity, Trade Price and Trade Time. The summary line contains Total Trades, TotalNumber of Buy Traded, Total Buy Traded Value, Buy Quantity Average Buy Traded Pric e, Total Number of Sell Trades, Total Sell Quantity Traded, Total Sell Traded Value and Average Sell Traded Price. Previous displays the Trade Screen client account number also. Trades are displayed in a reverse chronological order. First all buy trades are displayed and then sell trades are displayed. Special Features of Previous Trades (a) Trade cancellation can be requested from the Previous Trade screen. This facility is available only for members own trades. Manager canThe Corporatetrade cancellation for any request for branch or any dealer. The Branch Manager can request for trade dealer under cancellation for any that branch. The dealer can request for trade cancellation only for trades under that user (b) Trade modification can be requested from the Previous Trade canid. The user screen. request the Exchange to modify only the trade quantity field. Moreover, the new quantity requested must be enabled. lower than Currently trade modification original trade quantity. the facility is not

If

the

user sel ect s the opt ion

1.10.5 Outstanding OrdersThe purpose of Outstanding Orders (OO) is to enable the user to view the outstanding orders for a security. An outstanding order is an order the user, but which has not yet been been entered by that has completely traded or cancelled. The user is permitted to see his own orders. The fields which are available on the selection screen are Symbol, Series, Book type, Auction Number, Branch Id, Dealer, PRO/CLI and Time. in options available The the Book type field are Regular Lot, RETDEBT, Odd Lot, Negotiated Trade, Stop Loss and Auction. If the user selects view Auctionthe option to details, the Auction Number has to Market trade be compulsorily The corporate manager can view all the OO for all branches or for a specific branch. Under the specific branch, the user can view OO details for a specific dealer or for all dealers. Similarly it is possible to view all OO for a clients under a dealer. The Branch Manager can client or for allparticular details underview all OO i.e. all OO for all dealers and for all that Branch clients or for all dealers or for a specific dealer. The dealer can view OO for own user id only. The detailed outstanding orders screen is split into First Line and The first lineDetail Line. contains Symbol, Series, Market Type, Security Status,Current Date. The detail line contains Book Current Time and Label, Type, User Id, Client A/C Number, Order Number, Order Quantity Pending and Order Price. The orders are listed on the basis of price/time priority. displayed in The orders are Lot orders and then Stop order of Regular Loss orders. is not dynamically updated, but the user Outstanding order screen to refresh thehas option by reinvoking OO screen the inquiry. Features of Outstanding Orders (a) The user can modify orders from the outstanding orders screen. (b) The user can cancel orders from the outstanding (c) The user orders screen. of a particular order from the can view status orders screen. outstanding Special

entered.

1.10.6 A The Activity cti (AL) shows all the activities that have been Log performed on any These activities vit order belonging to that user. include order modification/cancellation, partial/full trade, trade y modification/cancellation. It displays information of only those orders in which some L place. It doesactivity has taken orders on which no activity has not og display those taken place.

The fields that are available on the selection screen are Symbol, Id, Dealer, PRO/CLI and Client Account Market Type, BranchSeries, Number. Market Type fields are compulsory. The Symb ol, Series and The options available in the Market Type field are Normal Market, RETDEBT, Odd Lot and Auction. The detailed AL screen is split into first line and detail line. first line displays Market Type, The Symbol, Series, Current Time and detail line contains User Id, Order Number, PRO/CLI indicator (where P-PRO, C-CLI), Buy/Sell Indicator, Order quantity, Order price, Order Terms/Trade Number, Disclosed Quantity, MF Indicator, MF Quantity, Activity Indicator and Activity Time. One line appears for each activity that has taken For example,placebuy order is traded against three separate sell if a today. orders, then the activity log for the buy order shows three separate lines and the original order details. The following activities are B For buy orders, this displayed: indicates S For sell orders, thisa match. indicates a OC This indicates an order match. was cancelled. OM This indicates an order was modified. The details displayed it orde r afterare the TC For both buy and wa orders this indicates that a trade sell s involving this order was cancelled. m TM For both buy andod orders this indicates that a trade sell involving this order was modified. ifi ed. Special terms associated with the order are displayed to help identify the Special Features of Activity Log (a) The AL gives details of all activities on chronological orders. (b) Within the order number, the details appear with the oldest first and the latest last. activity (c) The activity consists only of orders entered by the requesting trading member. (d) This inquiry option is not available to users in inquiry mode. Current Date. The

order.

1.10.7 Or The purpose de the Order Status (OS) is to look into the of dealers ownstatus of one of The screen provides the current rspecific orders. status details. and other order of orders The order status screen is not Sta dynamically the trade In case the order is traded,updated. details are also displayed. tus In case ofmultiple trades the display is scrolled. To view the status of a particular order, enter the order number for which viewed in the selection screen of OS. The first order status is to be the part of the

order number (i.e. today's date) is defaulted. The user has to the order second part of enter the number. If the user does not know user can number, then the the order position the highlight bar on the desired order on the Outstanding Order screen and then invoke the OS screen. The order number is directly defaulted in the Order Status selection screen. The detailed OS screen is divided into three parts. The first part covers the related information, ordersecond part covers the trade related information if the order has resulted in a trade and the third part gives summary details. The first part details are in two lines. The first line gives Book Series, OrderType, Symbol, (Buy/Sell), Total Order Quantity, Number, Type Order Price, Number and Participant Id. The PRO/CLI, Client A/C second MF/AON Indicator, Disclosed Quantity,line gives MF Quantity, Trigger Price, Day Indicator 1 (Order Modified - MOD), Indicator 2 (Order Cancelled - CXL) and Indicator 3 (Order Traded - TRD). The second part details are Trade Price, Trade Quantity, Trade Number. The third Trade Time and part details are and Balance Quantity Quantity Traded Today (remaining quantity). Special Features of Order Status (a) The OS provides the user the current status of the order i.e. whether order has been modified, order was cancelled, order was traded, order has been partially traded on the previous day. (b) It shows all the order details. It also shows the trade details fordone each trade agai (c) The data is presented in chronological order. One line appears forhas each activity that nst taken this place status of orders entered under (d) The dealer can view order orde today. that Dealer Id only. r. (e) This Inquiry option is not available to Users in Inquiry mode.

1.10.8 S The Snap Quote is a feature available in the system to n get instantaneous marke t information on a desired security. This is normally used a for security that is not setup ain the Market Watch window. The information p displayed for the set up security is same as that in Market Watch window Q i.e. Ex/Cum, action indicator Corporate the total buy order quantity, best buy u price, order sell price, total sellbest quantity, last traded price, last trade ot price change indicator and the no delivery indicator ND. e The Snap Quote is displayed for the time specified by the Exchangeto time. The from time display position of Snap Quote is reserved and no other user can therefore simultaneously information overlaps it. A inquiry (e.g. view a regularthe Snap MBP) and Quote display.

1.10.9 Mar The purpose ket the Market Movement screen is to provide of information to theof a security for the current day. user regarding the movement Mo This inquiry gives the snap shot for a particular security for a time interval Exchange. The fields that are available parameterisedvem as by the on the selection screen are Symbol, Series and Market type. The user can select entthe Market, Type as Normal Market RETDEBT and Odd Lot market. The detailed output screen is given in two parts. The first part the information regardinggives security for the entire day namely Symbol, Series, Market Type, Total Buy Order Quantity, Total Sell Order Quantity, Total Traded Quantity, High Price, Low Price, Open Price and Last Traded Price. The second part gives information for a particular time interval Interval, BuynamelyQuantity, Sell Order Quantity, Traded Quantity, Order Time High Price and Low Price. The user can save the Market Movement screen by specifying and file namethe directory information. This file can be viewed to save the in MSDOS Special Features of Market Movement (a) The Market Movement screen provides information to the user regarding the movement of a security for the orders/trades current day on d (b) The information displayed is from the time the market o was today opened and in n chronol e ogical 1.10.10 Market sequenc t o Inquir e. d y a The purpose of the Market Inquiry is to enable the user to view the markety market, for a security. It also statistics, for a particular . displays the open price and previous close price for a security. The fields that are available on the selection screen are Symbol, Series user Market type. The and can select market type as Normal, RETDEBT and Odd The detailed output screen is given in two parts. The first line displaysSecurity Status, Corporate Actions Indicator Symbol, Series, 1, Corporate Actions Indicator 2, Corporate Actions Indicator 3, Total Traded Quantity, 52 Week High and 52 Week Low. The second line displays Closing Price, Opening Price, High Price, Low Price, Last Traded Price and Net change from closing price. The third line displays Last Traded Quantity, Last Traded Time and Last

editor.

Lot.

Traded Date. The fourth line displays Best Buy Order Order Price, Quantity, Best Buy Best Sell Order Price and Best Sell Order Quantity. Features of Market Inquiry (a) This screen is not dynamically updated. It displays the of security status the security selected. 'S' indicates that the security is indicates thatsuspended, P in pre open (only for normal the security is in absence ofmarket) andindicators the security is open the above for trading.actions for a security is (b) An indicator for corporate displayed on the screen. The indicators are "CD" = cum-as follows: "XD" = dividend ex- cum-rights dividend "CR" = "XR" ex"CB" = cum-bonus = "XB" rights "CI = cum- = ex-bonus "XI = interest ex- interest (c) The net change indicator for last trade price with respect to the previous day's closing price and the net change percentage trade price for therespect to the previous day's with last closing price are displayed. (d) The base price of a security for the day is equal to the previous day's closing price of the security in normal circumstances. Thus, in the market inquiry screen the field indicating the closing price also the base price gives (e) If the base price is fmanually changed (due to a corporate o theaction) then market inquiry will not display the new base price in r the closing price field. t h e 1.10.11 Auctiond Inquiry a y The purpose of Auction. Inquiry (AI) is to enable the users to view activities forthe auction the current trading day. This window displays information on and auctions that have been auctions currently going about completed. The detailed line in the auction inquiry screen displays No. St. - Status Serial Number, security, Type - Buy/Sell auction, of the auction Symbol, Series, Best Buy Qty, Best Buy Price, Best Sell Price, Best Sell Qty, Auction Qty, Auction Price and Settlement Period. The following are the different status displayed for an auction security: S - Auction is in Solicitor M - System is Period matching F - Auction is over X - Auction is deleted the orders P - Auction is pending and yet to begin. Special

The user can view the auction details of a security setup in the by invoking market watch, inquiry screen after highlighting the the auction auction security. all the securities, the user should To view the auction details for blank out the contents of all the fields in the auction inquiry selection screen. auctions afterTo particular number, the user should blank out the a view the contents in Symbol & Series field and enter the number in the auction the selection number The auction inquiry screen then displays screen. field on from that all auctions number onwards. This window is dynamically updated.

1.10.12 Security/Portf olio ListThis is a facility for the user for setting up the securities in the market watch screen. This screen is also has a new facility of allowing the user to setup his own portfolio. Security List : The user can select securities based on Instrument Type and Market Type. Symbol, Series, search for A blank/partial Symbol andThe Symbol, Series, Market Type and Series is also possible. are displayedSecurityon the selection criteria. The user can based Name selected securities. also print the

Portfolio List : Once the security is selected, the same can be used up a portfolio. The user can give forname to the list so selected. a setting portfolio canThe modified and/or removed. The user can be existing also set- market particular portfolio in up a watch. Portfolio created can be used for basket order entry also. Order files can be generated based on the portfolio created using basket tra din 1.10.13 Multiple Index Broadcast g and opt Graph ion This screen displays information of NSE indices namely S&P CNX . CNX Defty, Nifty, S&P Junior, S&P CNX 500 and CNX Midcap CNX Nifty CNX IT, Bank indices are labeled vertically and the Nifty and CNX 100. The information is displayed against each index horizontally. The data displayed for as follows: - Current Index - High Index - Low Index each index is

- Open Index - Close Index - % change in Current Index (w.r.t. previous close index) - 52 week High - 52 week low

- Up Moves - Down Moves -

Market Capital all the indices on a real time basis to Index Graph displays isation the market. (in Rs. Lakh)

On Line Backup is a facility that the user can invoke to take a backup of all order and trade related information for the user. The information for the current day only. available is On the selection screen the user can select the various fields on which the output will be filtered. The fields that can be filtered are CLI, Market Series, Book Type, Symbol, Type, Instrument Type, Date, Time, Order Indicat or, Trade Indicator, Buy/Sell Indicator, Order Numbers and Trade Numbers The user is provided the option to copy the files to any drive of the computer or on a floppy diskette. This utility generates two ASCII files namely Order.txt and Trade.txt. The user can specify any filename for Orders and Trades. This utility will help the user to generate the Contract Notes. The user is first on to take backuprequested the C:\drive and subsequently copy to PC capacity and avoid overloading A:\drive to abnormal log-off.

1.10.14 Online Backu p

Basket Tradin The purpose of Basket Trading is to provide NEAT users with g

1.10.15

a order entry file for a selected portfolio. On create offline facility to inputting the value, the orders are created for the selected portfolio of securities ratios of theiraccording to the market capitalisations. An icon has been provided selected by the mouse to invoke Toolbar which can bein the the functionality. In the Basket Trading functionality, the User First Selects Portfolio from combo box. aThe Portfolio in the combo box is user defined portfolios from can be created or edited(whichthe Security List screen which is an existing functionality). All Users defined Portfolios are automatically loaded in to the combo box. The User then allocates an amount to the portfolio by mentioning the amount in the 'Amount' edit box. The amount entered is in lakh and must be less than or equal to Rs. 3000 lakh. If the amount entered is not to buy/sell a sufficient basket, a message "Insufficient amount complete fordisplayed. Then, the User mentions whether he the basket" is creating wants to buy or sell the Portfolio by selecting a choice from BUY/SELL combo box. The User has to mention the name of offline order file which would be generated. The Output Offline order file is always generated in the Basket directory of the current selected login drive. If a file with the given name already exists then it asks for overwriting the old file. A Reverse File with the same name is also

generated in 'R_Basket' directory of the current login drive. The Reverse (if contains reverse orderFile user has selected buy then it contains sell orders and vice-versa). The user can mention orders duration (IOC or check selecting from aday) bybox. The User can also specify PRO/C LI orders by selecting from the combo box. In case of CLI orders it is compulsory to mention the account number in the edit box. The Participant mentioned. name can be it is verified whether it is a valid If mentioned participant or not. The amount mentioned in the 'Amount Edit' Box is divided securities of amongportfolio, depending on their current the the market capitalisation, and the amount allocated per security is used to calculate the number of shares to be bought / sold for that security which is reflected in the offline order file. The number of shares is rounded off to the nearest integer. If the basket contains any security whose regular lot is not one, then the file by need to be correctedwill the user to accommodate shares in the portfolio tradable lots. If which is suspended/not eligible in contains a security the chosen market then an error message is displayed on the screen. available All the orders generated through the offline order file are priced at the market price. Quantity of shares of a particular security in portfolio are calculated as under: Number of Shares of a = Amount * Issued Capital for the security security in portfolio Current Portfolio Capitalisation where Current Portfolio = Summation [Last Traded Priceclose if not traded) * Number (Previous Capitalisation of Issued shares] In case at the time of generating the basket if any of the traded, the constituents of not security in the basket is weightage are the determined using may previous close price. This pricethe become irrelevant if there has in the corporate action been a security for the day and the same has traded beforenot yet beenof the file. Similarly, basket facility generation available for will not be security till the time a new listed it is traded.

1.10.16 Buy Back TradesAs per SEBI Notification, dated 14 November, 1998, buyback of permitted in securities is the Secondary Market. This is termed as BuyBack In the open market, buyback of shares is Open Market . from the permitted through Stock Exchanges having electronic trading facility and such are required buybackidentified upfront in the electronic to be orders trading screen as buyback orders.

The purpose of Buy Back Trade functionality is to give market aboutinformation to the the buy back trades executed from the start of the buy trading date in the securities whose period till current back currently on. buyback period is It provides information about Symbol, Series, Day's high Days Day's Low Price, price, Weighted Average Price, Days Volume, Total Volume, Highest/Lowest/Weighted Average Prices till previous day, Buy Back Start & The Buyback Trade functionality provides users with the the buyback information about trades going in various securities. The front screenLow price (Today), High price (Today), Symbol, Series, shows Weightage. and Previous price, Volume (Today) Average day Volume. The user after selecting a particular row from the buyback list box can view further information viz. Symbol, Series, Start date, End date, Total Traded Qty (Till date), Previous High price, Previous Low price and Wt avg. Price till date of buyback scheme. The Buyback broadcast updates the information.

End date.

1.10.17This section discusses certain supplementary functions of ry Functions NEAT such as Branch Order Value Limit, Most Active Securities, Colour Selection, Report Selection, Net Position and Print System Message. The supplementary menu list box has the following options: Report Selection Full Message Display Colour Selection Print System Messa Print Order/Trade ge Confirmation Ticker Selection ON/OOn/Off Slips Market Movement FF Most Active Securities Index Inquiry Offline Order Entry Order Limits SQUVL Order A Reprint Order/Trade t Confirma Branch Order t tion Slip V Net Position and Net r a Position Online Backup i l Backup b One line/Tabular Slips u User Order Value Limit u e t L Client Master e i M Index Trading m ai S it nt e e l n e a c n t c i e o n

Supplementa

Reverse Reset User id About Report Selection

Basket on traded quantity

Report selection window allows the user (corporate manager and branch manager) to specify the number of copies to be printed for each report. The user can update the number of copies for a report. The Report user (Corporate manager and Branch screen allows the Selection Manager copies to specify the number of only) to be printed for each report. All the reports of generated at the end areday. Once the reports are printed, the shows Selection screen Report the date and the time the reports were printed. The user can request for reprinting any of the reports. The reports that are available to the trading member are Open Order Done Order Log, TradesToday, Today, Market Statistics and Market Indices. Open Order: This report gives details for all dealers belonging to the trading member that are currently outstanding or unmatched orders. Regular lot, special terms, odd lot and stop loss outstanding orders are presented in this

report. Order Log:

The purpose of this report is to give the activity log of the orders for the dealers belonging to a trading member. This report placed today,shows Orders Orders modified today, Orders canceled and Orders deleted by the system. This report shows the activity log for the orders of trading member. It shows the details of the orders which aare entered today, modified today, canceled by the dealer today. For order modification, the for each modified order details are shown modification done.The purpose of this report is to show the Trades Done Today: details of the trading activity by the trading member. This report gives details of trades done today for all dealers belonging to the trading member firm. The report has details for all the types of trades i.e. Normal market trade, RETDEBT Odd Lot trade, trade and Auction Market Statistics: The purpose of this report is to show the trade. This report gives details related to all market statistics of that trading day. the securities markets. A separate Market Indices traded on that day for all disseminated Report is also which contains details regarding the to members Open, High, Low, Close, Previous Close and % change over the Previous Close of Nifty, S&P S&P CNX CNX Defty, CNX Nifty Junior, S&P CNX500, CNX Midcap, CNX IT, Midcap Bank Nifty, CNX 100 and Nifty 50 indices. Full Message Display This option enables the display of all the system messages right from the start of the Opening Phase. It is also possible to filter the messages

depending on the message code, symbol, time. The Client, date and system messages can be printed, if needed.

series, PRO/CLI,

Message area contains user id for order and trade cancellation confirmation\modification\ and rejection. The trade confirmation\modification\cancellation the messages displayed in the message area will contain corresponding remarks entered during the order entry. The user can filter, print and save messages. In the message the messagefiltering by code screen . The user has the option default on which the messages can be filtered. The to select the desired message code shows on Symbol, Series, Trading member Code, can also be messages filtered PRO/CLI/ ALL, Client A/C Number, Date and Time fields. In case the user desires to filter messages for trading member's own order/trade related messages, PRO has to be specified with member codethe trading in the Client Account field. In case the defaulting user desires particular client, CLI has to be to filter messages for a specified the Client Account field. In case the client account code inwith the user desires view all messages, All to has to be specified and the Client Account field should be blank. The message filter displays All by default invokes the when the user full message display screen. Message area will contain the machine number along with the which specifying frommessage machine the message have been generated. An extra filter code has been provided in the message area to filter messages on the machine number par am The messages are filtered as per the selection criteria. The ete message codes which the selection can on r. be Message Code made Description of are: Messages Selected All messages Auction order/trade Auction messages initiation listing relat messages ed Order messages Related message SPD Security Suspension/Des suspension SYS S Trades y s The full message display and filtered messages can be printed by t invoking the print command by ensuring that the printer is online. The e user messages by m can save Save option on the Full Message Display invoking the by specifyingscreen and the directory and file name in the pop up box. Here M option is an available to the user to both specify the directory and file e name to save s s a g e s AUC AUI LIS All ORD Miscellaneous

ALL

OTH

TRD

messages, or to choose the default directory i.e. nsecm\user directory. This file can be viewed in MSDOS editor. Colour Selection The user can customise the colours for various inquiry and other trader workstation screens as per choice. The backgro und and the foreground colours can be selected by invoking the Colour Selection option. The is displayedfollowing colour on the selection listbox: List of Screens: Lists all the screens in NEAT system. The user of changing both the foreground andhas the option the background colours of any screen. Display Window: Displays the screen with the changed colours. To colour of a particular screen, the userchange position the highlight has to the bar on the desired screen and select any one of the sixteen colour buttons. in the colour The be seen in the Display window. The user can reset can change the colour to default setting by selecting the Default option. It is to be noted the same colour for foreground of an user cannot select that the inquiry screen. Print System Mess ages The 'Print System Messages ON/OFF' enables/disables printing of On/O the when messages as and systemthey appear in the messages window. By ff default the option is set to `OFF'. The user can change the On/Off position by pressing the space bar. The current mode (On/Off) is displayed for this option on the Supplementary Menu scree Print Order/Trade n Confirmation itself.On/Off Slips Order/Trade The 'Print Confirmation ON/OFF' enables/disables printing of the to `OFF'. The user order/trade slips. By default the option is set can change the On/Off position by pressing the space bar. The current mode (On/Off) is displayed for this option on the Supplementary Menu screen itself. Ticker Selection The ticker selection screen allows the user to set up the securities appear in the that should window. All the securities available in users ticker themarket are displayed. If a security is deleted from for a particular system the system, it is also removed from the ticker selection display. The selection can be doneof securities for each market separately. The user can security typeselect one or all f o r d i s p l a y .

Market Movement The purpose of the Market Movement screen is to provide information to the User regarding the movement of a security for the current day. This inquiry gives the snap shot for a particular security for a time interval as parameterised by Most Active Securities the Ex ch This screen displays the details of the most active securities an ge. total traded based on the the day. The number `N' is value during parameterised by the Exchange. The information provided on this screen is not dynamically updated. However, the user can get the latest information by refreshing the screen. Index Inquiry Index Inquiry gives information on Previous Close, Open, High, Low S&P Current Index values of and CNX Nifty at the time of invoking this inquiry screen. This screen displays information of S&P CNX Nifty as of the time the screen was invoked on the current trading day. The data displayed is as - 52 week High - 52 week Low - Closing Index - Opening Index - High Index - Low Index - Current Index - Net Change - % Change At the end of day after market closure the Previous Close field current day's will display closing index value. The user requires to refresh the screen bythe -invoking re details of the screen. Offline Order Entry A facility Offline Order Entry has been incorporated in the trading software where the user can generate order file in a specific format outside the trading system and upload the file in the system by invoking this facility. The user has to specify the exact file location that can be a hard disk drive or a of the drive. The status floppy orders so uploaded is recorded in last two fields of the same file. Once the order processing is complete, the user can open the same file in MS- DOS editor. If the system assigns an order number, the same is written against the record. In case of any error(s), the corresponding error

follows:

code is written against the record. Offline order entry is also available for RETDEBT market. The user has to specify the relevant order file name in the Offline Order Entry pop-up box and then initiate the upload process. The user can the injection also interrupt It should be noted that the file has of the orders. to be in by the Exchange. The offline order entry format as specified the facility accepts comma separated file structure (file saved as *.csv where * is the file name). Order Limits Order limits is a facility to enable the user to specify maximum value per order and maximum quantity per order that can be entered from the trader workstation. At the time of order entry and order modification this limit is checked by the system. Order limits are set by individual users and are provided as safety measure against any inadvertent error during data entry while entering orders. For a user logging in for the first time, order limits are specified by default. Inas unlimited value/quantity is to be specified, data case specific has to be input fields namely Order Value (in lakh) entered in the respective Quantity. In & Order case unlimited is to be specified, the checkbox allows the user to set Unlimited as hi The order limits can be modified during market hours. s When the message Max. Value/Qty for one order modifies these limits, auser li has to Rs.......Lakh/...... is set m been displayed on the message window screen. When as unlimited, a message Max. Value/Qty for user sets the it. limit the one order has displayed on the message window been set to unlimited is screen. if either modifying the valuesWhile of the input fields is left blank, the dealer either an error message, gets Quantity Limit not Entered or Value Limit not Entered respectively. In case the user tries to modify without new values, aentering any message Values not changed is displayed. Whenever the user places an order, the order values are validated the checking to the trader workstation. these values to confineagainst In case that user ent ers an order the exceeds the specified quantity limit, a message Order quantity entered exceeds the order limit quantity is displayed. In case the user enters an order which exceeds specified order value (order price x order quantity) a message Order value exceeds order value limit is displayed. The quantity check is always done prior to order value if both valuescheck. Only are not exceeded, the order is sent to the system forcase of a market order if the order quantity processing. In further exceeds the order quantity limit, the checking is done at the trader workstation itself as However, for order value check, the check is case of priced orders.in the performed by the Host.

Market Price protection : This functionality gives an functionalit Trader to limit the risk of a market order, within a pre -set option to a percentage of the y Last Trade Price (LTP).The pre -set Market price protection default set topercentage is by The users can change the pre- set 5% of the LTP. Market price protection percentage from the Order Limit Screen which can be invoked from the Supplementary Menu. The set percentage will be Ntreltdr EXEapplicable till the is reinf At the time of o