There are four entities in the trading system. Trading members, clearing members, professional
clearing members and participants.

1. Trading members: Trading members are members of NSE. They can trade either on their own
account or on behalf of their clients including participants. The exchange assigns a Trading member
ID to each trading member. Each trading member can have more than one user. The number of
users allowed for each trading member is notifi ed by the exchange from time to time. Each user
of a trading member must be registered with the exchange and is assigned an unique user ID. The
unique trading member ID functions as a reference for all orders/trades of different users. This ID is
common for all users of a particular trading member. It is the responsibility of the trading member
to maintain adequate control over persons having access to the fi rms User IDs.

2. Clearing members: Clearing members are members of NSCCL. They carry out risk management
activities and confi rmation/inquiry of trades through the trading system.

3. Professional clearing members: A professional clearing members is a clearing member who is not
a trading member. Typically, banks and custodians become professional clearing members and clear and settle for their trading members.

4. Participants: A participant is a client of trading members like financial institutions. These clients
may trade through multiple trading members but settle through a single clearing member