{"id":3933,"date":"2021-04-07T07:08:03","date_gmt":"2021-04-07T07:08:03","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3933"},"modified":"2021-04-07T07:08:07","modified_gmt":"2021-04-07T07:08:07","slug":"sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse\/","title":{"rendered":"SEBI Prescribed Measures to Prevent Repeat of Trading Halt at NSE"},"content":{"rendered":"\n<p class=\"has-drop-cap\">On 22.03.2021, SEBI, by way of a Press\nRelease No 13\/ 2021, has notified the measures to prevent repeat of trading\nhalt at NSE. The same was in furtherance to the detailed RCA (Root Cause\nAnalysis) presented by NSE (National Stock Exchange) to SEBI Technical Advisory\nCommittee on 24.02.2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54bab85bb4e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54bab85bb4e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse\/#Key_Decisions_Made_by_SEBI_Technical_Advisory_Committee\" title=\"Key\nDecisions Made by SEBI Technical Advisory Committee\">Key\nDecisions Made by SEBI Technical Advisory Committee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse\/#Key_Measures_to_Prevent_Repeat_of_Trading_Halt\" title=\"Key\nMeasures to Prevent Repeat of Trading Halt\">Key\nMeasures to Prevent Repeat of Trading Halt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse\/#Directions_for_National_Stock_Exchange\" title=\"Directions for National Stock Exchange \">Directions for National Stock Exchange <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse\/#Directions_for_the_Governing_Board_of_National_Stock_Exchange\" title=\"Directions for the Governing Board of National Stock Exchange\n\">Directions for the Governing Board of National Stock Exchange\n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-prescribed-measures-to-prevent-repeat-of-trading-halt-at-nse\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Decisions_Made_by_SEBI_Technical_Advisory_Committee\"><\/span><strong>Key\nDecisions Made by SEBI Technical Advisory Committee<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key decisions made by SEBI Technical\nAdvisory Committee are as follows:<\/p>\n\n\n\n<ol><li>Unannounced\nLive Trading Sessions will be conducted from the Disaster Recovery Site of the\nMarket Infrastructure Institutions with a notice period of 4 hours from the\nSEBI prior to the start of the trading session, commencing from April 2021;<\/li><li>Unannounced\nLive Trading Sessions will be conducted from the Disaster Recovery Site of the\nMarket Infrastructure Institutions with a short notice period of 45 minutes\nfrom the SEBI prior to the start of the trading session, commencing from July\n2021;<\/li><li>In\nthe event of a disturbance in the \u201cCritical\nSystems\u201d of the Market Infrastructure Institutions, the MII will declare that\nsaid event as \u201cDisaster\u201d within 30 minutes of the event (earlier 2 hours) and will\ntake measures to restore the operations and functions including from Disaster Recovery\nSite within a period of 45 minutes (earlier 2 hours) from the declaration of\n\u201cDisaster\u201d;<\/li><li>All\nthe Market Infrastructure Institutions will study the feasibility and viability\nof intra-day shifting from the Primary Site to Disaster Recovery Site with a\nnotice period of 45 minutes from the Securities and Exchange Board of India;<\/li><li>Market\nInfrastructure Institutions will prepare a comprehensive testing plan and will build\na sufficient redundancy in its systems to mitigate the impact of any unforeseen\ntechnical problem and to confirm the failure of any sub-system of Market Infrastructure\nInstitutions will not impact other critical mechanisms of MIIs and the continued\nfunctioning of securities market;<\/li><li>MIIs\nor the Market Infrastructure Institutions will constantly monitor and supervise\nthe health or performance of various communication links and implement corrective\nmeasures, as needed;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Measures_to_Prevent_Repeat_of_Trading_Halt\"><\/span><strong>Key\nMeasures to Prevent Repeat of Trading Halt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With a view to further\nstrengthen the systems, to confirm faster restoration of functions and\noperations in case of any Disaster or Technical Glitch, the Securities and\nExchange Board of India has issued a Circular on 22.03.2021, to implement the\nmeasures to prevent repeat of trading halt as follows:<\/p>\n\n\n\n<ol><li>All Market Infrastructure Institutions need to check switchover functionality by conducting an Unannounced Live Trading from Disaster Recovery Site of the MII that, too, with a short notice period of 45 minutes;<\/li><li>In the event of disturbance of any one or more of the \u201cCritical Systems\u201d, the Market Infrastructure Institution will, within a period of 30 minutes of the said incident, need to declare that incident as \u201cDisaster\u201d and require to take measures to restore operations and functions, including from DRS within a period 45 minutes of the declaration of the \u201cDisaster\u201d. Consequently, the Recovery Time Objective (RTO) &#8211; the maximum time undertaken to restore operations and functions of the \u201cCritical Systems\u201d from Disaster Recovery System after the declaration of Disaster will be 45 minutes. Further, the \u201cCritical Systems\u201d for an Exchange or Clearing Corporation will include Trading, Collateral Management, <a href=\"https:\/\/swaritadvisors.com\/learning\/superior-fraud-risk-management-guide\/\" class=\"text-primary\"><strong>Risk Management<\/strong><\/a>, Clearing and Settlement, and Index Computation. Also, the \u201cCritical Systems\u201d for a Depository will include systems supporting settlement procedures and inter-depository transfer system;<\/li><li>Recovery Point Objective (RPO) denotes the maximum tolerable period for which the data might get lost due to a major event, has been minimised to 15 minutes from the existing 30 minutes;<\/li><li>All the Market Infrastructure Institutions have to incorporate a clear and comprehensive Communication Protocol and Procedure in BCP document for both external and internal communications, starting from the time of event till the rectification or resumption of systems or trading of MIIs;<\/li><li>All the measures to prevent repeat of trading halt need to be implemented within a period of 90 days;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Directions_for_National_Stock_Exchange\"><\/span><strong>Directions for National Stock Exchange <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key direction for the National Stock\nExchange can be summarised as:<\/p>\n\n\n\n<ol><li>The\nFunctionality of the updation of collaterals at the slave mechanism of NCL\nlocated at the data centre of the BSE or MSEI;<\/li><li>Connect\ntrading system at the primary site of National Stock Exchange to the slave system\nof NCL located at the data centre of BSE or MSEI;<\/li><\/ol>\n\n\n\n<p>NSE\/ NCL are advised to implement the said\nchanges within a period of 90 days.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Directions_for_the_Governing_Board_of_National_Stock_Exchange\"><\/span><strong>Directions for the Governing Board of National Stock Exchange\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key direction for the Governing\nBoard of the National Stock Exchange can be summarised as:<\/p>\n\n\n\n<ul><li>Determine as to why the management of the<strong> National Stock Exchange<\/strong><sup><a href=\"https:\/\/www.nseindia.com\/\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> failed to shift its operations from the Primary site to Disaster Recovery Site within the prescribed time frame as specified by SEBI;<\/li><li>Fix the responsibilities and duties of the individuals for the same;<\/li><li>The measures mentioned above need to be completed within a time frame of 21 days;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, SEBI, through a Press Release No 13\/ 2021, issued on 22.03.2021, has notified the measures to prevent repeat of trading halt at NSE in furtherance to the detailed Root Cause Analysis presented by National Stock Exchange to SEBI Technical Advisory Committee on 24.02.2021.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/sebi-decides-to-relax-timelines-for-compliance-requirements\/\">SEBI Decides to Relax Timelines for Compliance Requirements\n<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/04\/1616420616300.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">1616420616300<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 22.03.2021, SEBI, by way of a Press Release No 13\/ 2021, has notified the measures to prevent repeat of trading halt at NSE. The same was in furtherance to the detailed RCA (Root Cause Analysis) presented by NSE (National Stock Exchange) to SEBI Technical Advisory Committee on 24.02.2021. Key Decisions Made by SEBI Technical [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3935,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[64],"tags":[566],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3933"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3933"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3933\/revisions"}],"predecessor-version":[{"id":3943,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3933\/revisions\/3943"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3935"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}