Stock exchanges must inform brokers within 15 minutes in case of an outage: Sebi
Jan 9, 2023
Synopsis
In the event of a disruption in trading due to an outage in one or more market segments of the stock exchange, the other unaffected segments of the exchange shall continue the trading and other operations.
The Securities and Exchange Board of India (Sebi) on Monday tweaked the standard procedures to be followed by stock exchanges in the event of any technical outage that hampers normal trading operations.
In case of an outage, stock exchanges must inform brokers and other market infrastructure institutions about the same within 15 minutes of the occurrence of the outage, stated the revised guidelines.
The incident must be immediately communicated to the capital market regulator through an email.
“Further, the affected stock exchange shall update about the ongoing outage in the time intervals of 45 minutes from the initial intimation,” Sebi said.
In the event of a disruption in trading due to an outage in one or more market segments of the stock exchange, the other unaffected segments of the exchange shall continue the trading and other operations.
The extension of trading hours in the event of an outage, if applicable, must be mentioned in the intimation by the affected stock exchange.
Trading hours
If trading on the affected stock exchange resumes at least 1 hour before the normal market closure time, trading hours for all stock exchanges on that day would remain unchanged.
However, if the trading does not resume within 1 hour before the market closes, then trading hours for all other stock exchanges would automatically get extended for an additional 90 minutes for that day.
If trading on the affected stock exchange does not resume to normalcy even 45 minutes post the market close, then no further trading will be allowed in the exchange even during the extended market hours. But other stock exchanges will continue to operate till the extended time to enable smooth closure/settlement of intraday positions.
The extension of trading hours, if any, will be equivalent to both cash and derivatives markets, Sebi said.
[The Economic Times]
