Sebi to address institutional deficiencies in NSE glitch
A day after technical glitches halted trading at NSE for around four hours, market regulator Sebi on Thursday affirmed it will take all necessary measures to ensur e the under lying causes , including "institutional def iciencies", are addressed.
In a statement, the regulator said the decision to stop trading in its entir ety was taken b y the larg est stoc k bourse NSE due to "issues with the telecom service providers" and Sebi was informed of it onl y 10 minutes ahead of the halt of trade on Wednesday.
"Sebi w ould tak e all necessary measures to ensur e rectification of the underlying causes inc luding addressing institutional deficiencies," the sta tement said, ela borating on the steps which are required to be tak en b y mar ket infrastructure institutions (MII) like NSE after a tec hnical issue.
Stating tha t a r oot cause analysis report has already been sought fr om NSE, it said an MII has to submit a detailed root cause anal ysis to Sebi in a time-bound manner after due v etting by the Technology Committee and Governing Board of the MII. T his r eport is placed before Sebi’s technical advisory committee.
The Sebi frame work f or MIIs also has provisions for a monitoring mec hanism for ensuring cor rective action along with appropriate penalty wherever war ranted, the watchdog said.
Sebi said MIIs ar er equired to car ry out li ve trading fr om disaster r ecovery sites for two consecutive da ys e very six months, a part fr om quarterly d isaster r ecovery drills.
The decision to stop trading in its entirety was taken by NSE, the regulator said