On Jul. 26, IND BSE issued back office vendor empanelment notice.
IND BSE issued details on the empanelment of back-office (BO) vendor procedure.
Trading members manage BO functions either by in-house developed software or making use of services of BO software vendors; to achieve uniformed account maintenance/harmonize data submission to IND BSE, decision to empanel BO vendor.
Procedure
Operating guidelines to be followed by members for registering BO facility and process of empanelling BO vendor/in-house developed software is provided in annexure A.
All members are required to submit details of BO facility currently being used by them.
Link for submission through member portal issued in separate circular in due course.
Members developing BO software in-house may not be required to engage as empaneled vendor with IND BSE; for such BO facility, designated director of members make an application to BSE, provide undertaking as per point I of annexure A.
Details for submission including timelines will be communicated in due course.
BO vendors wishing to register with BSE as empaneled vendor, submit application through trading member carrying out necessary testing as per point II of annexure A.
BSE may seek additional detail when evaluating application for vendor empanelment.
Empanelment application evaluated based on background, infrastructure, systems, etc.
Members currently using BO facility services exempted from obtaining permission from BSE, if current BO vendor gets himself empaneled with BSE on/before Dec. 31, 2022.
New/existing trading member applying for availing BO facility after Dec. 31, 2022, are required to get permission from BSE for using empaneled BO vendor as per point III.
Empanelment for BO solutions, CTCL solutions and internet-based trading solutions are separate, and vendors are required to apply separately for empanelment for these.
Members advised to take note of guidelines and bring provisions of circular to BO vendors and ensure the conformance and compliance to requirements.
Utilization of services of BO vendor not empaneled, not permitted from Jan. 1, 2023.
Effectiveness
New/existing trading member must apply for BO facility by Dec. 31, 2022.
Dec. 2, 2022 Submission Manual
On Dec. 2, 2022, IND NSE issued a manual for submitting back-office software details.
All trading members are required to submit details of back-office software by Dec. 31.
Those using in-house back office software shall submit the required documentation as mentioned in annexure-A of the Jul. 2022 circular through ENIT before Dec. 31, 2022.
However, procedure for submission of documents for trading members using external back-office vendors shall be informed through a separate circular, in due course.
Document dated Dec. 2, 2022, received from IND NSE Dec. 3, summarized on Dec. 6.
Dec. 7, 2022 Empanelment Update
On Dec. 7, 2022, IND BSE issued update re empanelment of back-office vendors.
Trading members with in-house backoffice software are advised to submit documents before Dec. 31, 2022, trading members using external vendor will be informed shortly.
Apr. 2024 Process Streamlining
On Apr. 30, 2024, IND BSE revised undertakings for both members and back-office vendors, aims to streamline the submission process and ensure greater efficiency.
Detailed guidelines regarding these revisions have been outlined; procedure for empanelment includes checklist for in-house back-office software, back-office vendors.
Members developing in-house back-office software must submit specific documents via email; back-office vendors seeking empanelment must submit prescribed documents.
Members are advised to ensure compliance with the provisions by May 31, 2024.
