NSE’s drive for trading transparency in the offing

The biggest stock exchange — National Stock Exchange of India (NSE) — has decided to select a set of randomly picked investors’ information on their stock market transactions every day. The latest move is expected to force brokers to take a more transparent outlook in servicing investors.

NSE will send this information to around 250 retail and small investors initially identified on a daily basis to the address mentioned in the unique client code (UCC). The move will be real-time updates on trades executed in a particular account.

With the real-time information, investors will be able to compare the share prices at which their transactions were actually executed and the prices communicated by the broker. The latest initiative by NSE is expected to enable the investors to confirm or verify their transactions.

Transaction statements supplied by the NSE will provide trade execution transparency and authenticity to the investors as well as useful in helping stop certain malpractices.