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Proprietary Trading FAQs


Background:

‘Proprietary Trading’ is when a member trades on exchange on its own behalf. As directed by SEBI and in pursuance of byelaws members are advised to specify the nature of the order in terms of order being a ‘Client order’ or ‘Proprietary order’.

Members can enter either client "CLI" orders or proprietary "PRO" orders which are on their own account.

Facility of placing orders on proprietary account through trading terminals shall be extended only at one location as specified / required by the members. These location is defined as “Default Location”

In case any member requires the facility of using proprietary account through trading terminals from more than one location, such member shall be required to submit an application with undertaking as provided in consolidated circular to the Stock Exchange stating the reason for using the proprietary account at multiple locations. The Exchange may, on case to case basis after due diligence, consider extending the facility of allowing use of proprietary account from more than one location.

No, Member needs to submit single proprietary undertaking for all segments.

Please refer to the chapter “Proprietary trading” of Exchange consolidated circular.

Circular Date May 09,2019
Segment CM FO CDS COM
Circular Ref No. 40962 40963 40964 40965

Note - Members have to submit the physical undertaking document in the prescribed format along with necessary supporting as mentioned in the checklist attached with the aforesaid circulars.

Member can submit the scan copy on email at msm@nse.co.in and hardcopy in any of the regional offices or Head office marking to member services department.

Member can send mail to msm@nse.co.in to get an update on your undertaking status.

Once your undertaking is approved, you can request for activation of “proprietary trading” facility for NEAT User Id on ENIT. The process for submitting such requests is being provided in the user manual on the below path on member portal: ENIT- NEW-TRADE > Trade > Pro Trading > Pro Trading Request.

The below are the four type of request which a member can request proprietary trading module on ENIT:

  • Default Location Activation
  • Change In Default Location
  • Pro Enablement
  • Pro Disablement


The process for submitting such requests is being provided in the user manual on the below path on member portal: ENIT- NEWTRADE > Trade > Pro Trading > Pro Trading Request.

Members can view the status of their submitted request on the below path:

Request Type Path on ENIT
Proprietary Account Enablement and Proprietary Account Disablement Trade > Pro Trading > Pro Activity Report
Default Location and Change in default location requests Trade > Pro Trading > Default Location Activity Report

Pro facility on a particular User id may get reset in below cases.

  • User id shifting request
  • Disablement of a User id

If the shifting request is successfully processed then the member needs to apply for pro enablement request on ENIT.

Disclaimer:

“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”


Download FAQ’S for Proprietary Trading (.pdf)

Disclaimer:

“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”

Updated on: 06/02/2020
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