Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1.	Does the market use ISIN as the primary securities identification code?	Yes. India maintains ISINs for over 50 percent of all securities listed on the main exchanges, the Stock Exchange Mumbai (BSE) and the National Stock Exchange (NSE). ISINs are available for virtually all securities actively traded by FIIs.
2.	Are the major participants in the market linked electronically?	Yes. Each of the major exchanges (NSE and BSE) maintain electronic links with the depositories and exchange members, including local custodian banks. In order to maintain connectivity with market participants throughout India, both the BSE and NSE have nation-wide satellite links.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	No. The depositories maintain automatic interfaces with depository participants. ISO standards are not used. The Indian market has not implemented Structured Financial Messaging Systems (SFMS).
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	The market has a unique code only for the local markets. The codes for the international markets have yet to be developed. Every Depository Participant (DP) has a unique identification number and further allots each of its clients a client identification number. The combination of the DP ID and the Client ID is unique across the depository system. There is a recommendation by SEBI that brokers provide stock exchanges with their clients' Permanent Account Number (PAN). However, the PAN is not yet an established identification code for client accounts.