Financial Daily from THE HINDU group of publications
Thursday, Apr 29, 2004
Financial Daily from THE HINDU group of publications Thursday, Apr 29, 2004 |
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Stock Markets Markets - Regulatory Bodies & Rulings SEBI issues clarification on straight through processing Our Bureau
Mumbai , April 28 THE Securities and Exchanges Board of India has clarified on the procedure for Straight Through Processing (STP), which has been made mandatory for all institutional trades from July 1, 2004. SEBI flowchart details that an STP user intending to send an instruction would send the message to his STP service-provider after digitally signing it, a circular has said. The STP service-provider would verify the signature and forward it to either the recipient STP user, if the recipient STP user is availing himself of services of the same STP service-provider, or the STP centralised hub if the recipient STP user is not with the same service-provider. On receipt of the message, the STP centralized hub would verify the signature and send an acknowledgment to the service-provider. The recipient STP service provider after examining the details would send an appropriate acknowledgment with digital signature to the centralised hub. The hub would, in turn, forward the signed acknowledgment to the sending service-provider. The recipient user would receive the message and verify the signature of the recipient STP service-provider and sending STP user. To enable inter-operation, the centralised hub would provide a utility/client software to the STP service-provider. The public key infrastructure system for the interface, which would make STP a market-wide system, would be implemented at a later stage, stated the circular.
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