Brokers will have to submit risk- based supervision (RBS) data for first six-months of the current financial year latest by November 30, said leading stock exchanges BSE and NSE. The submission of data is mandatory for all active members of the exchanges (those who have executed/cleared even a single trade during the period), the bourses said in separate circulars. The submission would have to be made only via electronic mode and physical copies are not required to be submitted to the exchanges.
Brokers who fail to make timely submission of RBS data will be slapped monetary penalty. Besides, prolonged non-compliance would result in disablement of trading terminals, the exchanges said. Trading members have been submitting RBS data since 2013 -14. However, there have been instances of delayed or non- submission of data.
Accordingly, the exchanges, in consultation with markets regulator Sebi formulated the time-table for submission of RBS data and also the penalty provisions for delayed or non- submission of such provision. The Securities and Exchange Board of India (Sebi) has decided to adopt this new supervision model, based on the level of risks posed by a market entity, to help it better regulate the marketplace and strengthen its surveillance system.
Under the model, various market entities are divided broadly into four groups – very low risk, low risk, medium risk and high risk – and the quantum of surveillance and number of inspections would increase as per the risk level. The move helps the surveillance system take care of most of the smaller offences, so that the investigation resources are utilised more effectively to tackle serious violations in the market place. The data collated from the members towards risk-based supervision would be shared with the capital market regulator.