As per BSE, all provisions of the stock exchange in respect of DMA facility would be applicable to the FPIs. The bourse would provide the direct market access facility (DMA) facility across all FPI categories. FPIs have been divided into three categories as per their risk profile.
Category I includes government and government related investors such as central banks, governmental agencies, sovereign wealth funds and international or multilateral organizations or agencies.
Category II FPI includes appropriately regulated broad-based funds such as mutual funds, investment trusts, insurance/reinsurance companies, regulated persons such as banks, asset management companies, investment managers advisors, portfolio managers.
Category III class of FPI are all other entities not eligible under Category I and II such as endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts, individuals and family offices.
As per the regulator's norms, investors seeking to avail DMA facility would not have to enter into a separate 'broker client agreement' and it would be replaced by a simpler 'terms and conditions' document.
However, the brokers have to specifically authorize clients or investment managers acting on behalf of the clients for providing DMA facility, after fulfilling Know Your Client requirements and carrying out necessary due diligence.
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.


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