The National Stock Exchange (NSE) on August 31, 2023, notified regarding the Launch of an "Execution only Platform" (EOP) on NSE MF Platforms.
The SEBI issued a circular dated June 13, 2023, on the Regulatory Framework for Execution Platforms for facilitating transactions in direct plans of schemes of Mutual Funds, which will come into force with effect from September 01, 2023.
Any entity desirous of operating as an EOP is required to be a body corporate and obtain registration as a Stockbroker in terms of the SEBI (Stockbrokers) Regulations, 1992 under the EOP segment of the Exchange.
Thus, the Existing members of the Exchange as well as body corporates desirous of being onboarded on the EOP Segment of the Exchange as a New Member, may apply for enablement post-completion of the registration process in the EOP Segment. An outline of the process is mentioned below:
The existing as well as New Members applying for Membership on the platform will have two options:
• New Exchange Membership for EOP Segment
• Existing Trading Member opting for Membership of EOP Segment
1) New Exchange Membership for EOP Segment:
a) Application of New Membership:
This membership is only for Corporations and all the necessary documents for applying for membership in the EOP segment are available on the link:
https://www.nseindia.com/trade/documents-for-membership
b) Enablement in the EOP Segment at NSE:
Details regarding enablement documentation and formalities shall be communicated through a separate circular.
c) Issuance of User id:
i) Once the Membership is activated, the user ID will be issued, and the Membership will be able to post trades (only for Mutual Funds) on the NSE Mutual Fund Platform
ii) The detailed user manual is shared in Annexure 2 for the Member to use the entire platform and register Mutual Fund trades on the platform.
2) Existing Trading Member opting for Membership of EOP Segment:
a. Application for EOP Segment: The Member needs to provide an additional registration document for the EOP segment as provided in https://www.nseindia.com/trade/membership-formats
b. Enablement in the EOP Segment at NSE:
1. Details regarding enablement documentation and formalities shall be communicated through a separate circular.
c. Issuance of User ID:
i) Once the Membership is activated, the user ID will be issued, and the Membership will be able to post trades (only for Mutual Funds) on the NSE Mutual Fund Platform.
ii) The detailed user manual is shared in Annexure 2 for the Member to use the entire platform and register Mutual Fund trades on the platform.
[Circular No. 07/2023]
