Modifications to client code post trade execution
Summary
SEBI mandates that stock exchanges may only permit post-trade client code modifications in cases of genuine error or wrong data entry. Exchanges are required to establish objective parameters for such changes, which must be approved by their Governing Board and disclosed to trading members. Additionally, exchanges must impose monetary penalties on non-compliant members and include verification of these modifications in internal audit reports.
Text
Stock Exchanges can permit modifications to client code post trade execution only in case of genuine error or wrong data entry made by trading members.
Set objective parameters for identification of client code modifications arising as a result of genuine error or wrong data entry.
These objective parameters should be approved by the Governing Board of the Exchange and disclosed to the trading members.
Impose monetary penalty in addition to disciplinary action against members who do not meet the laid down objective parameters.
Include verification of client code modification as a reporting item in internal audit report of the trading members.
This circular is issued in exercise of the 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.
The circular shall come into force from the date of the circular.
Source: SecMarx — Modifications to client code post trade execution. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.