Access Procedure By Gilt Account Holders to Web-Based NDS-OM System Prepared by: IDMD RBI

NDS-OM system ? NDS-OM is a screen based electronic anonymous order matching system for secondary market trading in Government securities (G-sec) owned by RBI. Presently the membership of the system is open to entities like Banks, Primary Dealers, Insurance Companies, Mutual Funds etc. i.e entities who maintain SGL accounts with RBI. Primary Members ? Primary Members (PM) are the members of NDS-OM having Constituent Subsidiary General Ledger (CSGL) and current account with RBI, who authorize their Gilt Account Holders (GAHs) to have direct access to the web enabled NDS-OM system. Gilt Account Holders ? GAHs are non-NDS members who have gilt account and current account with PMs. GAHs as permitted by RBI include NBFCs, Provident Funds, Pension Funds, Mutual Funds, Insurance Companies, Cooperative Banks, Regional Rural Banks, Trusts, Corporates, Individuals etc. NDS-OM system Primary Member GILT Account Holder

GAH is accessing the NDS-OM web based system through PM Current Position: NDS-OM system Oh!! I am unable to directly access NDS-OM system Primary Member GILT Account Holder GAH is accessing the NDS-OM web based system through PM

After Implementation of Web based NDS-OM system: Primary Member NDS-OM system Wow! I am able to directly access NDS-OM system through WEB under the guidance of my Primary Member GILT Account Holder GAH is directly accessing the NDS-OM web based system

What are my benefits from New WEB-based NDS-OM system? Primary Member GILT Account Holder 1. I will have access to the same order book of NDS-OM as the Primary Member. 2. I will be in a better position to control my orders and will have access to real time live quotes in the market and get price advantage. 3. Since notifications of orders executed as well as various queries are available online to me, I am better placed to manage my position.

Steps: Access to the NDS-OM-Web Can you please help me with direct access to the new NDS-OM Web based system that will allow me to trade in G-Sec? Primary Member GILT Account Holder Step 1: The GILT account holder (GAH) approaches the Primary Member (PM)

Sure. But I need to take care of 3 things:- Steps Contd……. Sure. But I need to take care of 3 things:- 1) Complete your KYC 2) Ensure your simple IT infrastructure 3) Submit the Access Form Primary Member GILT Account Holder Step 2: The PM needs to ensure the completion of KYC. Also ensures necessary arrangement in IT infrastructure with GAH

Steps Contd……. Primary Member GILT Account Holder CCIL I will now request CCIL to activate my GILT account holder in the NDS-OM Web system Primary Member GILT Account Holder CCIL Step 3: On receiving instructions from the PM, CCIL creates and activates the GAH in the NDS-OM web based system

Steps Contd……. Primary Member GILT Account Holder CCIL To allow secure access, I need to procure digital certificates and e-tokens for each user and send to CCIL for them to generate login and passwords for them Primary Member GILT Account Holder CCIL Step 4: GAH identifies its users and inform PM. PM creates users in his system and procures e-tokens and digital certificates, sends the details to CCIL for authorization

Steps Contd……. Primary Member GILT Account Holder CCIL Based on Digital certificates received from you, I will now create log-in ids and passwords of each user and forward to you CCIL Step 5: CCIL creates log-in id and passwords with the help of the digital signature and e-token and forwards it to PM

Steps Contd……. GILT Account Holder Primary Member CCIL Dear account holder, I am forwarding you your users log-in ids, passwords, digital certificates and e-tokens that will allow your users to trade on the NDS-OM-WEB CCIL Step 6: The PM sends the secure log-in id and password of different users to the GAH

Step 7: The PM sets the risk parameters for the GAH Steps Contd……. Primary Member GILT Account Holder As I am responsible for all the trade orders placed by you, I need to set limits or apply controls to your trades in order to mitigate my risk. These risk parameters include ‘Single Order Limit’ (SOL), Price/Yield Range Setting, Activity Controls, Security Stock Balance, Turnover Limit and Funding Limit Step 7: The PM sets the risk parameters for the GAH

Steps Contd……. GILT Account Holder Primary Member This is really very convenient, I can log-in, watch online G-Sec market movements, decide myself on my trades at my appropriate price/yield (within ‘ranges’ set for me by my PM) and place an order instantly using my internet, instead of calling my primary member every time I want to place a trade. Step 8: The users of GAH can directly place the trade orders on the web NDS-OM system

Steps Contd……. Primary Member GILT Account Holder This is very convenient, I need not monitor continuously as long as you are placing orders within the limits set by me for you. But still at the same time, I can view your placed orders, can hold or cancel in case of my discomfort Step 9: The PM can view the orders and monitor easily the trading activities of its GAH

Steps Contd……. GILT Account Holder Primary Member Now that the buy or sell order placed by you is within my set risk limits, I am comfortable and from my window, I do not try to hold/cancel your order. I know that the order is getting into main order book of the existing NDS-OM. I really need not worry as from now on, the usual NDS-OM workflow will takeover which I am so familiar with.

But, how my order will be settled? GILT Account Holder The orders placed by you finally merges in main order book of existing NDS-OM matching system. Matched successful orders will flow to CCIL in a Straight Through Processing (STP) environment for settlement. Primary Member

Steps Concluded GILT Account Holder Primary Member Wow!!! In a new WEB system, I get an automated system generated pop-up/notification on my successful deals. I can even print my deal ticket sitting in my office.

GILT Account Holder Primary Member Whether any charges I need to pay for using WEB facility ? GILT Account Holder No, you need not to pay any charge for using this web-based facility. Primary Member

Great !! What a trading experience!! GILT Account Holder