The National Stock Exchange (NSE) on April 17, 2023, issued a notification regarding the modification of the Client Codes (All Segments) Update.
The objective is to reduce order entry mistakes and to discourage client code modifications, levy of penalty in all cases of client code modification as applicable was considered appropriate, and accordingly a penalty structure was implemented.
The framework for Client Code Modification monitoring and penalty is as under:
•Penalty on Client Code Modification where either original code or modified client code is the non-institutional client.
•Designated ERROR account.
•Modification to ERROR client code category and Liquidation of trades transferred to ERROR account.
•Client code modifications wherein both the two client codes (original code and modified code) are of institutional category in the framework for monitoring and penalty.
[Notification No. NSE/INVG/56395]
