|
CHIEF GENERAL MANAGER DERIVATIVES AND NEW PRODUCTS DEPARTMENT DNPD/ Cir-9/04 February 3, 2004 The Executive Director / Managing Director / Administrators Of all Stock Exchanges. Dear Sir, Sub: Issuance of Electronic Contract Notes This is in continuation of the SEBI circular no. SMDRP/POLICY/Cir-15/00 dated December 15, 2000 and clarification issued vide letter dated SEBI/SMD/SE/15/2003/29/04 dated April 29, 2003 on the issue of an electronic contract note whereby SEBI had permitted the issue of electronic contract notes with digital signature obtained from a valid Certifying Authority provided under the Information Technology Act, 2000 (IT Act). The exchanges were directed to make the necessary amendments to the bye-laws, rules and regulations for the implementation of the same. It has been brought to the notice of SEBI that the format of the electronic contract note prescribed by the exchanges were not in conformity with the format of the physical contract note particularly with respect to the pre-printed terms and conditions. Hence members issuing electronic contract notes were also issuing physical contract notes which amounted to duplication and unnecessary reconciliation between the physical and electronic contract notes. In order to streamline the issuance of electronic contract notes as a legal document like the physical contract note, the exchanges are advised to implement the following: - The exchanges would prescribe a standard format for the electronic contract note (based on the model format prescribed in Annexure A) in its bye-laws, rules and regulations.
- The exchange bye-laws, rules and regulations for issuance of electronic contract note shall be amended to include all the standard pre-printed terms and conditions in the physical contract note. The electronic contract note would mention the relevant bye-laws / rules / regulations of the exchange subject to which the said contract note is being issued.
- The exchange shall also modify / amend other relevant bye-laws, rules and regulations with respect to signing of the electronic contract note with a digital signature so as to make the modified format of the electronic contract note a valid legal document like the physical contract note.
- The mechanism of record keeping of electronic contract notes in a soft non-tamperable form shall be prescribed by the exchange in compliance with the provisions of the IT Act, 2000.
Hence you are advised to, - -
- Make necessary amendments to the relevant bye-laws, rules and regulations of the exchange for the implementation of the above decision immediately.
-
- Bring the provisions of this circular to the notice of members of the Exchange and also disseminate the same on your website, if any.
-
- Communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no 13 of the Monthly Development Report for the month of February 2004.
This circular is being issued in exercise of powers conferred under section 11 (1) of the Securities and Exchange Board of India Act 1992, read with section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours sincerely, N. PARAKH
ANNEXURE - A Message IFN 515 - Broker to Custodian – Contract Note – Equity Format Sequence
Mandatory Block A (General Information) | Status | Field | Field Name | Content and Options | Remarks | Rules | M | 16R | | GENL | Start of block | | M | 20C | Reference | :4!c//16x | Type of CN, Exchange number and CN No. | Format: (Qualifier)/ /(References) Qualifier: "SEME" (4 Uppercase Characters) References: (Contract Type/ Exchange No. / Contract Number) Contract Type: A or B (1 Character Set) Exchange number (2 digits – e.g. Calcutta Stock Exchange will be 03 ) Contract Number: xxxxxxxxxx (13Characters) The reference should not start or end with slash ‘/’ and must not contain two consecutive slashes ‘//’. | M | 23G | | 4!c | To indicate new message or cancellation of a previous message | Format: (Function) Function: "NEWM" or "CANC" | O | 98A | Date | :4!c//8!n | Preparation Date | Format: (Qualifier)//(Date) Qualifier: "PREP" (4 Uppercase Characters) Date: YYYYMMDD (8 Digits) | M | 22F | Indicator | :4!c//4!c | Dummy (taken since mandatory) | Format: (Qualifier)//(Indicator) Qualifier: " TRTR" (4 Uppercase Characters) Indicator: "TRAD" (4 Uppercase Characters) |
Mandatory Subsequence A1 Linkages M | 16R | | LINK | Start of block | | M | 20C | | :4!c//16x | To indicate the cancelled contract note (CANC). In case of NEWM, the field should contain "DUMMY" , | Format: (Qualifier) //(Reference) Qualifier: " PREV" (4 Uppercase Characters) Reference: The reference no. as given in field SEME of the earlier contract note that is being cancelled. (16 Characters) [In case of NEWM, the field should contain "DUMMY"] | M | 16S | | LINK | End of Block | |
End of Mandatory Subsequence A1 Linkages
Mandatory Block C (Confirmation details) M | 16R | | CONFDET | Start of block | | M | 98A | Trade Date | :4!c//8!n | To give details of the trade date. | Format: (Qualifier)//(Date) Qualifier: "TRAD" (4 Uppercase Characters) Date: "YYYYMMDD" (8 Digits) | M | 98A | Settlement Date | :4!c//8!n | To give details of the settlement date. | Format: (Qualifier) / (Date) Qualifier: "SETT" (4 Uppercase Characters) Date: "YYYYMMDD" (8 Digits) |
M | 90B | Price | :4!c//4!c/3!a15d | To indicate the trade rate | Format: (Qualifier)/ /(Amount Type Code)/ (Currency Code) (Price) Qualifier: "DEAL" (4 Uppercase Characters) Amount Type Code: "ACTU" (4 Uppercase Characters) Currency Code: "INR" (3 Uppercase Alphabets) Price: Upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. | | O | 92A | Price | :4!c//[N]15d | To indicate brokerage rate per share | Format: (Qualifier)/ /(Amount Type Code)/ (Currency Code) (Price) Qualifier: "CORA" (4 Uppercase Characters) Sign (-/+) Price: Upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. | M | 94B | Place | :4!c//4!c/30x | To identify the exchange | Format:(Qualifier)/ /(Place Code)/(Bic code / Narrative) Qualifier: "TRAD" (4 Uppercase Characters) Place Code: "EXCH" (4 Uppercase Characters) BIC code of the exchange will be used. Where BIC code is not available, please indicate full name of the Stock Exchange |
M | 22H | Indicator | :4!c//4!c | To indicate whether the trade is Buy [BUYI] / Sell [SELL] | Format: (Qualifier)//(Indicator) Qualifier: "BUSE" (4 Uppercase Characters) Indicator: "BUYI" or "SELL" (4 Uppercase Characters) | M | 22H | Indicator | :4!c//4!c | To indicate where the trades is against payment [APMT] or free of payment [FREE] | Format: (Qualifier) //(Indicator) Qualifier: "PAYM" (4 Uppercase Characters) Indicator: "FREE" or "APMT" (4 Uppercase Characters) |
Mandatory Sub Block C1 (Confirmation Parties) M | 16R | | CONFPRTY | Start of block | |
M | 95Q | Party | :4!c//4*35x | To give details of the client as mentioned on the contract note. | Format: (Qualifier) //(Name, SEBI Regn No., Pan No.& Address of client.) Qualifier: "INVE" (4 Uppercase Characters) Name, SEBI Regn No., Pan No. &Address |
O | 97A | Account | :4!c//35x | To identify the safekeeping account. All clients need to obtain a custodian participant code. Exchange will be identified based on 94B value in Confirmation Details irrespective of which exchange’s Cust participant code is mentioned. | Format: (Qualifier) //(Custodian Participant Code) Qualifier: "SAFE" (4 Upper Characters) Custodian Participant Code: (35 Characters) |
M | 16S | | CONFPRTY | End of block | |
End of Mandatory Subsequence C1 (Confirmation Parties) M | 36B | Quantity of Financial Instrument | :4!c//4!c/15d | To define the trade quantity | Format: (Qualifier)//(Quantity Type Code) /(Quantity) Qualifier: "CONF" (4 Uppercase Characters) Quantity Type Code: "UNIT" (4 Uppercase Characters) Quantity: upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. | M | 35B | Identification of Security | [ISIN1!e12!c] [4*35x] | To identify the ISIN of the Scrip and company name. | Format: (Identification of Security) (Description of Security) Identification of Security: "ISIN" followed by the ISIN Code Description of Security: Description of the instrument(4 lines of 35 Characterss) |
M | 70E | Narrative | :4!c//10*35x | To identify Segment Type i.e. Rolling (DR) or Inter FII (DI) or Auction Rolling (AR) /Settlement Number | Format: (Qualifier) //(Narrative) Qualifier: "TPRO" (4 Upper Characters) Narrative: Line 1: "DR" or "DI" or "AR" / Settlement Number as mentioned on Stock Exchange system (35 Character Sets) | M | 98C | Date/Time | :4!c//8!n6!n | To Identify order time | Format: (Qualifier) /(Date)/ (Time) Qualifier: "PROC" (4 Upper Characters) Date: YYYYMMDD Time : HHMMSS | M | 16S | | CONFDET | End of block | |
End of Sequence C (Confirmation Details) Mandatory Sequence D (Settlement Details) M | 16R | | SETDET | Start of block | |
M | 22F | Indicator | :4!c//4!c | Dummy (since mandatory) | Format: (Qualifier) //(Indicator) Qualifier: "SETR" (4 Upper Characters) Indicator: "TRAD" (4 Upper Characters) |
Mandatory Subsequence D1 (Settlement Parties) M | 16R | | SETPRTY | Start of block | |
M | 95P 95Q | Party Party | :4!c//4!a2!a2!c[3!c] :4!c//4*35x | Indicates the contracting broker Broker BIC code is used In case the BIC code doesn’t exist Indicates the Broker | Format: (Qualifier)//(BIC code of broker) Qualifier: "BUYR" in case of a Sale "SELL" in case of a Purchase BIC Code of the contracting broker Format: (Qualifier)//(Name of broker) Qualifier: "BUYR" in case of a Sale "SELL" in case of a Purchase Name:of the contracting broker |
O | 70C | Narrative | :4!c//4*35x | To provide additional broker contact details | Format: (Qualifier) //(Narrative) Qualifier: "PACO" (4 Uppercase Upper Characters) Narrative: Exchange Broker code! Sebi Registration Number! Address of the Broker (140 Characters) | M | 70E | Narrative | :4!c//10*35x | To provide for Declaration | Format: (Qualifier) //(Narrative) Qualifier: "DECL" (4 Uppercase Upper Characters) Narrative: Arbitration Clause(10 lines of 35 char each) Line 1:This contract is subject to Rules, Line 2:Byelaws and Regulations and Line 3:usages of (name of the exchange). In event Line4: of any claim (whether admitted or Line 5:not), difference or dispute arising Line 6:between you and me/us out of these Line 7:transactions, the matter shall be Line 8:referred to arbitration as provided Line 9:in the Rules, Byelaws and Line 10:Regulations of (name of the exchange). |
M | 16R | | SETPRTY | Start of block | |
M | 95P 95Q | Party Party | :4!c//4!a2!a2!c[3!c] :4!c//4*35x | Indicates who will be delivering / receiving the securities. In case of Clearing House Trades bic code of the Clearing Corporation will be used else in case of Hand Delivery Trade the BIC of the broker will be used. In case the BIC code doesn’t exist Indicates the Delivery Type. The name of the clearing corporation is to be used in case of a clearing house trade. In case of a hand delivery trade, the brokers name is to be used. | Format: (Qualifier)//(BIC code of broker) Qualifier: "REAG" in case of a Sale "DEAG" in case of a Purchase BIC Code of the Clearing House (For Clearing House Trades) else BIC Code of the Broker (For Hand Delivery Trades) Format: (Qualifier)//( Name of Clearing House) Qualifier: "REAG" in case of a Sale "DEAG" in case of a Purchase Name of the Clearing House (For Clearing House Trades) else Name of the Broker (For Hand Delivery Trades) |
End of Subsequence D1 (Settlement Parties) Mandatory Subsequence D3 (Amounts)
M | 19A | Amount | :4!c//3!a15d | To identify the Deal Amount | Format: (Qualifier) //(Currency Code) (Amount) For: Deal Amount Qualifier: "DEAL" (4 Upper case Characters) Narrative: "INR" (3 Upper Letters) Amount: upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. |
M | 19A | Amount | :4!c//3!a15d | To identify the brokerage | For Brokerage: Qualifier: "EXEC" (4 Upper case Characters) Narrative: "INR" (3 Upper Letters) Amount: upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. |
M | 19A | Amount | :4!c//3!a15d | To identify the service tax | For Service Tax: Qualifier: "TRAX" (4 Upper case Characters) Narrative: "INR" (3 Upper Letters) Amount: upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. |
M | 19A | Amount | :4!c//3!a15d | To identify the settlement amount | For Settlement Amount Qualifier: "SETT" (4 Upper case Characters) Narrative: "INR" (3 Upper Letters) Amount: upto 15 digits (including decimal places and decimal sign) comma has to be used as decimal sign and is mandatory. Integer part of amount must contain atleast one digit. |
M End of Mandatory Subsequence D3 (Amounts)
End of Sequence D Settlement Details Optional Sequence E (Other Parties)
M | 16R | | OTHRPRTY | Start of block | |
M | 95Q | Party | :4!c//4*35x | Dummy (since mandatory) | Format: (Qualifier) //(Narrative) Qualifier: "EXCH" ( 4 Upper case Characters) Narrative: "ORDER DETAILS" |
O | 70D | Party | :4!c//6*35x | To identify the trade Ref. Number. The same field can be repeated multiple times to identify different order numbers | Format: (Qualifier) //(Narrative) Qualifier: "PART" ( 4 Upper case Characters) Narrative: Trade Ref. No (15Digits) Trade Ref. Qty (15 Digits) Trade Ref. Rate (15 Digits comma at appropriate place) Date: YYYYMMDD HHMMSS (15 Character Sets) |
O | 20C | Reference | :4!c//16x | To identify the Order number | Format: (Qualifier) //(Reference) Qualifier: "PROC" (4 Character Reference : Order number (16 Character Sets) | M | 16S | | OTHRPRTY | End of block | |
-----| End of Sequence E Other Parties
Illustration - (IFN 515) Broker to Custodian – Contract Note – Equity {IFN515}{ SENDERADDRS }{ RECVERADDRS }{ :16R:GENL :20C::SEME//A0212345 :23G:NEWM :98A::PREP//20020828 :22F::TRTR//TRAD :16R:LINK :20C::PREV//DUMMY :16S:LINK :16S:GENL :16R:CONFDET :98A::SETT//20020902 :98A::TRAD//20020828 :90B::DEAL//ACTU/INR200,00 :94B::TRAD//EXCH/XNSEINB1XXX :22H::BUSE//SELL :22H::PAYM//APMT :16R:CONFPRTY :95Q::INVE// Client Name , Sebi Reg No Other Details :97A::SAFE//CLNT_CODE :16S:CONFPRTY :36B::CONF//UNIT/1000,00 :35B:ISIN INE009A01021 INFOSYS TECH DEM INR5.00 :70E::TPRO//DR :16S:CONFDET :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::BUYR//Broker BIC Code :70C::PACO// Exchange Broker code Sebi Registration Number Address of the Broker :16S:SETPRTY :16R:SETPRTY :95P::REAG//CCILINB1XXX :16S:SETPRTY :16R:AMT :19A::DEAL//INR200000,00 :16S:AMT :16R:AMT :19A::EXEC//INR2000,00 :16S:AMT :16R:AMT :19A::TRAX//INR100,00 :16S:AMT :16R:AMT :19A::SETT//INR197900,00 :16S:AMT :16S:SETDET :16R:OTHRPRTY :95Q::EXCH//ORDER DETAILS :70D::PART//000000000001234 000000001000,00 000000000200,00 20020822 10:20:33 :20C::PROC//123123123 :16S:OTHRPRTY -}
Illustrative Example Explained - IFN 515 - Broker to Custodian – Contract Note – Equity Block GENL gives General information | :16R:GENL | | :20C::SEME//A0212345 | Indicates the contract note no Contract Type (1 Char) Exchange No. (2 Char) Contract Number | :23G:NEWM | Indicates it is a new message | :98A::PREP//20020828 | Message preparation date | :22F::TRTR//TRAD | | | :16R:LINK | | :20C::PREV//DUMMY | For new message | | :16S:LINK | | | :16S:GENL | | Block CONFDET provides details about the trade being confirmed | | :16R:CONFDET | | :98A::SETT//20020902 :98A::TRAD//20020828 | Settlement date (Value date) Trade Date | :90B::DEAL//ACTU/INR200,00 | Deal rate | :94B::TRAD//EXCH/XNSEINB1XXX | Identifies the Exchange | :22H::BUSE//SELL | Indicates that it’s a sale transaction | :22H::PAYM//APMT | Indicates that the transaction is against payment | Confirmation Party details | :16R:CONFPRTY | | :95Q::INVE// Client Name , Sebi Reg No Other Details | Provides details like client name, sebi reg no etc as provided in contract note | :97A::SAFE//CLNT_CODE | Indicates the client code | | :16S:CONFPRTY | | | | :36B::CONF//UNIT/1000,00 | Indicates the Quantity of security | :35B:ISIN INE009A01021 INFOSYS TECH DEM INR5.00 | Name of the security (ISIN if available) | :70E::TPRO//DR | Type of Trade | | :16S:CONFDET | | Block SETDET provides settlement details | | :16R:SETDET | | :22F::SETR//TRAD | | Block SETPRTY provide details about settlement parties | :16R:SETPRTY | | :95P::BUYR//Broker BIC Code :95P::REAG//CCILINB1XXX | Broker Code and that the trade is to be settled with Clearing House (CCIL) | :70C::PACO// Exchange Broker code, Sebi Registration Number ,Address of the Broker | Broker details as provided in Contract Note | | :16S:SETPRTY | | Block AMT provides details about the amounts involved | :16R:AMT | | :19A::DEAL//INR200000,00 :19A::EXEC//INR2000,00 :19A::TRAX//INR100,00 :19A::SETT//INR197900,00 | Deal amount Broker’s commission Service tax Settlement amount | | :16S:AMT | | | | :16S:SETDET | | Block OTHRPRTY provided details about the trade executed on the exchange | :16R:OTHRPRTY | | :95Q::EXCH//ORDER DETAILS | Exchange order Number | :70D::PART// 000000000001234 000000001000,00 000000000200,00 20020822 10:20:33 | Trade details | :20C::PROC//123123123 | | | :16S:OTHRPRTY | |
|
