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FAQs on UCC/PAN validation in Trading system


Background:

With reference to circular NSE/ISC/51355 dated February 18, 2022 and NSE/ISC/51754 dated March 22, 2022 issued by Investor Services Cell department, members are requested to note that w.e.f. July 01, 2022 (proposed implementation date) only order with valid and compliant UCC and PAN as per aforesaid circulars shall be accepted by the Exchange in the CM, FO, CD, COM*, and SLBM Segments. 

*PAN validation mechanism is already present in Commodity Derivatives segment for all orders (PRO and CLI) at the time of order entry, there is an additional enhancement to validate the 6 KYC attributes as mentioned in the circular no. NSE/ISC/51355 dated February 18, 2022.

UCC and PAN shall be validated for all orders [Proprietary (PRO) and Client (CLI)] at the time of order entry with UCC details uploaded by members in UCC system. In case of mismatch, the order shall be rejected by the Exchange and an appropriate error message shall be displayed in trading system. The same validation shall also be applicable for UCC and PAN in the trade modification request submitted by the members on the trading system.

Members are required to note that only valid and compliant UCC/PAN details uploaded by members in UCC system before the cutoff time set by UCC department and approved by Exchange shall be available from next trading day.

In case of any queries for status of UCC updating and/or reporting, members are required to approach the UCI team. [email id - uci@nse.co.in or Toll Free: 1800 266 0050 (option 5)]

UCC/PAN validation mechanism shall be implemented in trading system by the Exchange in the Capital Markets (CM), Futures & Options (FO), Currency Derivatives (CD), Commodity Derivatives (COM)*, Securities Lending & Borrowing Scheme (SLBM) segment

*PAN validation mechanism is already present in Commodity Derivatives segment for all orders (PRO and CLI) at the time of order entry, there is an additional enhancement to validate the 6 KYC attributes as mentioned in the circular no. NSE/ISC/51355 dated February 18, 2022.

During order entry/trade modification, trading system will check and validate the combination of member code, client code and PAN updated and approved in the UCC system.

Further, as per ISC circular no. NSE/ISC/51355 dated February 18, 2022, client accounts meeting the below guidelines shall be considered as compliant and permitted to trade in the respective segment viz. Equity, Equity Derivatives, Currency Derivatives, Commodity Derivatives, SLB and Debt Market w.e.f. July 01, 2022 (proposed implementation date):

  1. Compliant with 6 KYC attributes viz Name, Complete address (including PIN code No. in case address is in India), PAN, valid Mobile number, valid email address, Income details/range.
  2. Custodian details updated for Clients availing custodian services
  3. PAN verification status of the client is Approved.

In case of CM segment, UCC/PAN validation shall be applicable to all types of orders entered in all trading sessions viz. Normal Market, Block Window, Auction Market, Pre-Open, Special Pre-open session, Illiquid Call Auction session & Closing session. The mechanism shall be applicable at the time of Order Entry and Trade modification.

In case of F&O and CD segments, UCC/PAN validation shall be applicable to all orders entered in Normal market session. The mechanism shall be applicable during the Order Entry and Trade modification.

UCC/PAN validation shall be applicable for all types of orders viz. PRO (Proprietary) and CLI (Client) orders. The mechanism shall be applicable at the time of order entry and trade modification. Kindly note that Trade Modification facility is not present in the Trading system for SLBM. NSE clearing may be approached for the same.

Check for compliant UCC shall be applicable for ‘CLI’ and ‘PRO’ orders at the time of order entry. In SLBM segment, orders can be placed using either the ‘UCC’ or ‘Unique Client Code allotted by Clearing Corporation’ or ‘PAN’ of the client. Please be informed that the repay/recall/rollover trade shall only be allowed in the code under which the original position is held.

Yes, UCC/PAN validation mechanism will be applicable for PRO (Proprietary) as well as CLI (Clients) - Custodial Participant (CP), Non-Custodial Participant (Non-CP) orders and BUYBACKORD orders.

An appropriate rejection message shall be displayed on trading terminal for orders cancelled due to UCC validation.

For NNF users, please note that the orders shall be rejected with existing error codes as mentioned below in the respective segments. The respective error codes are also mentioned in the API documents.

Segment

Error Code / Error Massage

Remark

CM

ERROR_INVALID_PAN (17177)

If Client ID is not found in UCC data, for that member or if there is a mismatch of PAN ID between UCC Database and incoming packet.

FO & CD

ERROR_INVALID_ACCOUNT_NO (16585)

If there is an invalid account number or Client ID is not found in UCC system, for that member.

ERROR_INVALID_PAN (17177)

If there is an invalid PAN or mismatch of PAN ID between UCC database and incoming order/trade modification request, for that member.

COM

ERROR_CLIENT_NOT_FOUND_IN_EXCHANGE_UCI (17181)

Client not present in Exchange UCC system.

SLB

ERROR_INVALID_ACCOUNT (16431)

If Client ID is not found in UCC data, for that Member

As indicated in NSE circular NSE/ISC/51754 dated March 24, 2022, members are required to cross verify that the rejected UCC is uploaded and approved in UCI database.

In case where the investor is exempt from PAN by Income Tax authority, the member needs to mandatorily mention ‘PAN_EXEMPT’ in the PAN Field in applicable segments during order entry. UCC validation shall be applicable to PAN_EXEMPT UCC at the time of order entry.

UCC/PAN validation check shall also be applicable for trade modification requests i.e., Client code changes done by members on the trading system and the same shall be validated with valid and compliant UCC/PAN details updated in UCC system. The modified client code shall be validated on the same rules as applicable during order entry. Members initiating such trade modification requests need to ensure that the UCC's (changing from client code “A” to client code “B”) are updated by them in UCC system well in advance.

Under normal circumstances UCC’s identified as compliant by the Exchange at 22.00 hrs on the previous day shall be considered as ‘permitted to trade’ for the next trading day. However, in the event of any exigencies, the UCC’s identified as ‘compliant’ by the Exchange at 14.30 hrs shall be considered for order placements on the subsequent trading day.

The Trading system does not validate the Client status present/updated in UCC database by Trading member.

In case order is rejected due to the UCC/PAN validation, trading members are required to check that the UCC/PAN details entered in the Client master in trading system, UCC/PAN details entered at the time of order entry/modification and the PAN as reported in UCC system is matching.

Member can check the ‘Exchange status’ of UCC to know whether the UCC is permitted to Trade or not in report name “SEG_TMCODE_UCC_TRADING_STATUS_DDMMYYYY_nn”.

The structure of this report and availability of the report details has been provided in NSE circular NSE/ISC/51754 dated March 24, 2022. Further for any other UCC related query, members may approach the UCI team. [email id - uci@nse.co.in or Toll Free: 1800 266 0050 (option 5)]


Download FAQs on UCC/PAN validation in Trading System (.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: 03/06/2022
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