Description

NSE extends its Inventory Management System (IMS) for commodity derivatives to trading members and their clients, with a user manual outlining login, password management, and account procedures.

Summary

NSE is extending the Inventory Management System (IMS), operated by NSE Clearing Ltd. (NCL), to trading members and their clients in the commodity derivatives segment. The circular is accompanied by a user manual (v1.0) detailing how clients can access, log into, and manage their IMS accounts.

Key Points

  • IMS (Inventory Management System) is being extended to trading members and their clients for the commodity derivatives segment.
  • Trading members are responsible for creating client user accounts in IMS and updating correct email IDs and UCCs in the NSE UCC database.
  • Clients receive login credentials (User ID, Participant Code, Password, and NMASS link) via registered email upon successful registration.
  • Two-factor authentication (2FA) via OTP (mobile or email) is mandatory at first login.
  • Clients must change their password upon first login.
  • Account lockout occurs after multiple consecutive failed login attempts; trading members must unlock accounts on client request.
  • Client de-registration must be requested through the respective trading member.
  • Early Pay-in (EPI) and Vault Service Provider (VSP) features are part of the IMS scope.

Regulatory Changes

No new regulatory rules introduced. This circular operationalizes the extension of IMS access to a wider participant base (trading members and clients) in the commodity derivatives segment.

Compliance Requirements

  • Trading Members: Must ensure correct email IDs and UCCs are updated in the NSE UCC database for all commodity derivative clients before IMS registration. Must handle client account creation, unlocking, and de-registration requests.
  • Clients: Must use registered credentials to log in, complete mandatory 2FA verification, and change password on first login. Must contact their trading member for account unlock or de-registration.

Important Dates

  • Circular date: 2026-03-25
  • No specific implementation deadline mentioned in the available content; trading members and clients should act promptly to set up access.

Impact Assessment

The extension of IMS to trading members and clients in the commodity derivatives segment improves inventory tracking and management capabilities for market participants. The operational impact is moderate — trading members need to onboard clients into the system and maintain accurate UCC records. There is no direct market price impact. Clients gain self-service access to inventory management, reducing dependency on intermediaries for routine operations.

Impact Justification

Operational circular extending an existing system (IMS) to a broader user base in commodity derivatives; no immediate market or price impact, but requires action from trading members to register clients.