Top stock exchange NSE has decided to extend direct market access (DMA) facility to foreign portfolio investors (FPIs), corporates and primary dealers from tomorrow.
DMA facility allows investors direct access to the stock exchange's trading system without any manual intervention by the broker.
"The exchange is now pleased to announce that in addition to institutional clients, DMA facility shall be extended to FPI (category I, II and III), body corporates and primary dealers with effect from June 2, 2016," NSE said in a circular today.
According to NSE, the DMA facility may be used by the client or an investment manager of the client.
Besides, only Sebi-registered entity would be permitted to act as investment manager on behalf of institutional clients.
"In case DMA is used by the clients through an investment manager, the investment manager may execute the necessary documents on behalf of the clients," NSE said.
Some of the benefits of DMA facility include direct control of clients over orders, faster execution of their orders, reduced risk of errors associated with manual order entry and lower transaction costs.
The bourse would provide the DMA facility across all three FPI categories, which have been divided as per their risk profile.
