How are the Government securities transactions reported?
15.1 Transactions undertaken between market participants in the OTC/telephone market are expected to be reported on the NDS platform within 15 minutes after the deal is put through over telephone. All OTC trades are required to be mandatorily reported on the secondary market module of the NDS for settlement. Reporting on NDS is a four stage process wherein the seller of the security has to initiate the reporting followed by confi rmation by the buyer. This is further followed by issue of confi rmation by the seller’s back offi ce on the system and reporting is complete with the last stage wherein the buyer’s back offi ce confi rms the deal. The system architecture incorporates maker-checker model to preempt individual mistakes as well as misdemeanor. 15.2 Reporting on behalf of entities maintaining gilt accounts with the custodians is done by the respective custodians in the same manner as they do in case of their own trades i.e., proprietary trades. The securities leg of these trades
