Sebi Proposes Shorter Disaster Recovery Drills, Stricter Backup Rules for Stock Exchanges
· Business · Economic Times, Moneycontrol
The Securities and Exchange Board of India (Sebi) has proposed stricter business continuity and disaster recovery norms for market infrastructure institutions, including stock exchanges, clearing corporations, and depositories. The regulator aims to reduce the time for mock disaster recovery drills from a full trading day to a non-working day, easing the process for exchanges handling extended trading hours like commodity derivatives. Sebi also wants to strengthen operational resilience of primary data centres and improve data recovery arrangements, citing learnings from past drills and testing practices. The consultation paper seeks public feedback on these changes, which follow earlier guidelines issued in 2012, 2019, and 2021. Current rules require intraday shifting tests during mock trading sessions to meet recovery time and point objectives.
Why it matters
Stock exchanges, clearing houses, and depositories will face tighter operational resilience requirements, potentially reducing downtime risks during disruptions. Investors and market participants may benefit from more robust backup systems, but compliance costs could rise for these institutions.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.