The Securities and Exchange Board of India (Sebi) on Monday requested the governing board of the National Stock Exchange (NSE) to find out why its administration didn’t shift NSE’s operations from main website to catastrophe restoration website inside the time-frame specified by the regulator. NSE suffered a glitch on February 24 that halted buying and selling for 4 hours.
Sebi additionally requested NSE to “fix individual responsibilities” for the failure to shift operations on time, inside 21 days. The regulator additionally tightened the norms to make sure a quicker restoration of buying and selling operations in case of any catastrophe or technical glitch at market infrastructure establishments (MIIs). MIIS embody inventory exchanges, clearing firms and depositories.
Sebi stated that every one MIIs ought to verify how easily they’ll swap over their operations to the catastrophe restoration website by conducting unannounced dwell buying and selling from the catastrophe restoration website with a brief discover of 45 minutes.
The regulator issued these measures after NSE offered an evaluation of its buying and selling halt to a Sebi technical advisory committee and after the panel issued options on coping with such disruptions.
It desires MIIs to implement these measures inside 90 days.