Markets regulator Sebi today (November 28) issued new rules on continuation of trading in case of technical problems. These new rules will be applicable from April 1. SEBI issued a circular ordering both the NSE and BSE exchanges to act as alternate trading venues for each other. SEBI says trading will be shifted in case of technical problems.
According to the new rules, only shares listed on the BSE can trade on the National Stock Exchange (NSE) if there is a technical problem with the stock exchange Bombay Stock Exchange (BSE). At the same time, if there is any technical problem in NSE, only the shares listed in NSE will be able to trade on BSE. Stock exchanges have been asked to issue Standard Operating Procedures (SOP) for this within the next 60 days.
F&O deals can also be offset At present NSE will prepare a reserve list of BSE listed stocks only. Then BSE will create a reserve list of stocks listed on NSE only. F&O trades of shares and indices can also be offset.
A high correlation index position can also be set. Information about a fault in an exchange will be communicated to other exchanges within 75 minutes. According to the SOP, the alternative exchange will start trading in shares of others.
The disaster recovery site was tested on September 28 Earlier, a special mock trading session was held at the National Stock Exchange (NSE) on Saturday, a holiday, September 28, to test the disaster recovery venue. On this day, the futures and options (F&O) segment along with capital markets traded from 12 noon to 1 pm. The disaster recovery Site is tested so that the stock exchange business can run smoothly even in case of any emergency.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
