SEBI has issued an up to date framework for dealing with technical outages on dealer buying and selling platforms. It replaces the November 2022 guidelines after reviewing outage knowledge and business suggestions, and is efficient from 9 January 2026. You could find the total round right here.
The up to date framework focuses on 5 issues.
Cut back compliance for smaller brokers.
Exclude points which can be exterior a dealer’s management or have minimal impression.
Simplifying outage reporting.
Scaling tech and catastrophe restoration necessities based mostly on dealer dimension.
Making penalties rely on how severe and the way usually glitches occur.
This framework applies to inventory brokers who:
• Present on-line buying and selling platforms, reminiscent of net or cellular apps.• Have greater than 10,000 registered shoppers as of 31 March of the earlier monetary 12 months.
The exchanges will publish the listing of brokers to whom this framework applies.
What’s a technical glitch?
SEBI defines a technical glitch as any malfunction in a inventory dealer’s digital techniques that’s immediately or not directly associated to buying and selling or danger administration and lasts for 5 minutes or extra throughout buying and selling hours.
This consists of failures in:
Login
Order inserting, modifying, cancelling, or execution
Order affirmation or standing
Viewing funds, margins, or collateral
Danger administration and allocation techniques
What doesn’t depend as a technical glitch?
International cloud or know-how supplier failures.
Alternate or clearing company system points.
Points throughout new account opening or KYC processing.
Again workplace points that don’t have an effect on buying and selling or settlement.
Failures at banks, cost gateways, or cost aggregators.
Points in charts, revenue and loss, or different determination assist instruments.
Cases the place monetary disincentives won’t apply
One of many buying and selling channels, cellular or net, is affected whereas the opposite is working.
The glitch is minor and doesn’t materially have an effect on seamless buying and selling.
The exchanges will outline how minor and main glitches are categorized.
Reporting timeline
Inside two hours of a technical glitch, the dealer should notify the inventory exchanges.
The dealer should inform shoppers by way of its web site and channels reminiscent of electronic mail SMS or in app notifications.
The exchanges will publish the incident on their web sites.
Reporting necessities
Brokers should submit two reviews by way of the frequent reporting portal known as Samuhik Prativedan Manch.
A preliminary incident report by T+1 day the place T is the date of the incident. If T+1 is a buying and selling vacation it strikes to the subsequent buying and selling day.
Root trigger evaluation to be submitted inside 14 working days from the date of the incident, together with particulars of the trigger and corrective actions.
System capability and tech controls
Brokers are anticipated to run techniques that may deal with their shopper load. Which means planning for peak site visitors throughout servers networks and buying and selling apps.
All software program adjustments have to be examined earlier than being rolled out, and correct controls have to be in place to stop defective updates from affecting buying and selling.
The exchanges will challenge pointers based mostly on dealer dimension and know-how use.
Alternate degree monitoring
The exchanges run an API based mostly monitoring system known as LAMA that tracks dealer platforms in actual time. It will proceed, with exchanges defining logging and knowledge retention norms.
Enterprise continuity and catastrophe restoration
Enterprise continuity and catastrophe restoration (BCP and DRS) guidelines will rely on the scale of the dealer. Smaller brokers won’t be required to maintain separate catastrophe restoration websites.
Bigger brokers will want backup websites in numerous seismic zones, run common drills, and meet set limits for system restoration and knowledge loss.
Penalties and public disclosure
The penalty construction shall be revised based mostly on the kind of glitch and the way usually it happens. The exchanges may even publish all dealer outages on their web sites.
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