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Use stock exchange data for trading and not gaming: NSE to trading members 

The usage of exchange data by trading members has to be exclusively for legitimate trading purposes for their clients, and not for gaming and virtual trading, the National Stock Exchange said in a circular.
“It has come to the notice of the exchange that some market participants are using the Exchange data for gaming and virtual trading purposes which goes against the principles of fair and transparent trading,” NSE said.
Trading members have, therefore, been asked to ensure strict adherence to the compliance requirements.
Further, the NSE has put in place a framework to select and appoint auditors to conduct forensic audit of trading members with a view to provide equal opportunity to all competent auditors empaneled by SEBI.
At present, SEBI has empaneled CA firms/companies to take up assignments relating to forensic audit.
Under the framework, the exchange will define the scope of audit, timelines for completion and invite quotations from the auditors who are empaneled with SEBI to conduct the forensic audit, it said in a separate circular.
The auditors will need to submit their quotations to the exchange within 5 working days, and upon receipt of the quotations, the exchange will shortlist 3 auditors who have submitted the lowest quotes.
“Thereafter, the lowest of these 3 quotes, shall be then circulated to other 2 auditors who have submitted the quotation, giving them an opportunity to revise the bid, if any, and submit the revised quotation,” NSE said.
Post the completion of this exercise, the forensic auditor with "lowest commercial" will be appointed.
The forensic auditor is largely required to assess the status of assets and liabilities of trading members and ascertain its positions vis-a-vis funds and securities, misappropriation/diversion
of client funds and securities.
It also has to identify whether any trading member has engaged in providing assured returns/unauthorised collective investments/portfolio management to its clients.

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