NDS-OM Web Module is only an electronic front end for accessing the main NDS-OM system. It is a screen based electronic anonymous order matching system for secondary market trading in Government securities. Earlier, Gilt Account Holders (GAH) who have gilt account with the PMs were permitted to have indirect access to the NDS-OM system i.e they could request their Primary Members to place orders on their behalf on the NDS-OM system. With the introduction of NDS-OM web module, the internet based utility permits GAH to directly trade (buying and selling) in Government Securities (G-Sec) in the secondary market.
As the GAH now have the access to the same order book of NDS-OM as the Primary Members (PMs), they are in a better position to control their orders (place/modify/cancel/hold/release) and will have access to real time live quotes in the market. Because of the notifications of orders executed as well as various queries are available online to the GAH, they are better placed to manage their positions. However, the access is subject to controls by respective Primary Member (PM) with whom GAHs have gilt account and current account as PM remains responsible for all the actions of his GAHs. Further, the PM will be responsible for the margin maintenance and settlement of the trades of their GAHs.
The PM shall ensure that the various Operational Risk Control Parameters (ORCP) values have been set on NDS-OM Web before commencement of trade on NDS-OM Web by an eligible authorized GAH user. For this purpose, PM needs to install an application for its GAHs Management, Risk Management and Bid Management policies and practices. The clearing corporation of India Ltd (CCIL), the NDS-OM Administrator would create an authorized super-user (Client Head) for the PM for attending to the management activities. Dealing on NDS-OM Web would also be subject to RBI’s NDS-OM Guiding Principles.