Description

NSE modifies service level agreement for colocation IP requests, reducing processing time from 30 days to T+5 working days effective September 1, 2025.

Summary

NSE has revised the service level agreement for processing colocation IP requests, significantly reducing processing time from 30 days to T+5 working days. The changes apply to Message Rate Change (upgrade/downgrade) and IP surrender requests, with new fee structures for multiple requests within the same calendar month.

Key Points

  • 30 days notice period for Message Rate Change (downgrade) and IP surrender requests discontinued
  • New processing timeline: T+5 working days for requests submitted by 3:00 PM
  • First Message Rate Change request per IP per calendar month remains free
  • Subsequent requests in same month charged Rs 2,000 plus applicable taxes
  • One free message category change per month per IP allowed
  • All existing pending downgrade and surrender requests will be rejected

Regulatory Changes

  • Partial modification to Section II.D of Exchange circular NSE/MSD/67756 dated April 29, 2025
  • Revised SLA timelines replacing the existing 30-day notice period
  • Introduction of monthly limits and fee structures for multiple requests

Compliance Requirements

  • Colocation participants must resubmit fresh requests for pending Message Rate Change (downgrade) and IP surrender applications
  • Requests must be submitted before 3:00 PM on working days for T+5 processing
  • Application Processing Fees plus applicable taxes required for Message Rate Change requests
  • Members limited to one free message category change per IP per month

Important Dates

  • Effective Date: September 1, 2025
  • Request Submission Deadline: 3:00 PM on working days for T+5 processing
  • Monthly Reset: Processing fee benefits reset each calendar month

Impact Assessment

Positive Impact:

  • Significantly faster processing (T+5 vs 30 days) improves operational efficiency
  • First request per month remains free, reducing costs for occasional users
  • Best effort processing commitment provides better service predictability

Operational Impact:

  • Colocation participants need to resubmit existing pending requests
  • Monthly planning required for multiple IP changes to optimize costs
  • Enhanced flexibility for message rate adjustments with faster turnaround

Cost Impact:

  • Potential cost savings for single monthly requests per IP
  • Additional charges (Rs 2,000 + taxes) for multiple requests in same month
  • Processing fees applicable for Message Rate Change requests

Impact Justification

Operational improvement for colocation participants with faster processing times and revised fee structure