Mumbai: The Securities and Exchange Board of India (Sebi) has asked the board of National Stock Exchange (NSE) to determine why the exchange’s management failed to shift to the disaster recovery site within the specified time frame on February 24, when trading halted for nearly four hours due to technical glitch. The regulator has asked the exchange’s board to fix ‘individual responsibilities’ for the fiasco within 21 days.
At present, if there is a technical glitch stock exchanges are required to declare that incident as disaster within two hours and take measures to restore operations including from disaster recovery site within two hours from the declaration of disaster.
Sebi has also directed NSE to implement within 90 days the functionality of updating the collaterals at the ‘slave system’ of NCL (NSE Clearing Ltd) placed at data center of BSE and MSEI.
NSE has also been directed to connect the trading system at its primary site to the slave system of NCL placed at data center of BSE and MSEI.
The regulator said NSE presented its detailed root cause analysis report before its technical advisory committee(TAC) on Monday.
Based on the Sebi panel’s suggestion, the regulator said unannounced live trading sessions will have to be conducted from disaster recovery site (DRS) of stock exchanges within a notice of four hours from the regulator before the start of the trading session from April 2021 and within 45 minutes from July 2021.
In the event of disruption in stock exchanges system, they will have to declare the incident as disaster within 30 minutes and restore operations including from disaster recovery site within 45 minutes from the declaration of disaster, Sebi said.
“MIIs (market infrastructure institutions) shall study the feasibility of intra-day shifting from Primary Site to DR site with a notice of 45 minutes from SEBI,” the regulator said in a circular on Monday.
Sebi also said stock exchanges should prepare comprehensive testing plan and build sufficient redundancy in its systems in order to mitigate impact of any unforeseen technical glitch. It must also ensure that failure of any subsystem would not impact other critical systems of stock exchanges.
