March 23, 2021 3:09:43 am
The Securities and Exchange Board of India (Sebi) on Monday asked the governing board of the National Stock Exchange (NSE) to determine why its management failed to shift NSE’s operations from primary site to disaster recovery site within the time frame specified by the regulator. NSE suffered a glitch on February 24 that halted trading for four hours.
Sebi also asked NSE to “fix individual responsibilities” for the failure to shift operations on time, within 21 days. The regulator also tightened the norms to ensure a faster restoration of trading operations in case of any disaster or technical glitch at market infrastructure institutions (MIIs). MIIS include stock exchanges, clearing corporations and depositories.
Sebi said that all MIIs should check how smoothly they can switch over their operations to the disaster recovery site by conducting unannounced live trading from the disaster recovery site with a short notice of 45 minutes.
The regulator issued these measures after NSE presented an analysis of its trading halt to a Sebi technical advisory committee and after the panel issued suggestions on dealing with such disruptions.
It wants MIIs to implement these measures within 90 days.
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