Market regulator SEBI has today (November 28) issued new rules regarding continuation of trading in case of technical problems. These new rules will come into effect from April 1. SEBI has issued a circular ordering both the exchanges NSE and BSE to act as alternative trading venues for each other. SEBI says that trading will be shifted in case of technical problems.
According to the new rules, if there is a technical problem in the stock exchange Bombay Stock Exchange (BSE), only the shares listed in BSE will be able to trade in the National Stock Exchange (NSE). At the same time, if there is a technical problem in NSE, only the shares listed in NSE will be able to trade on BSE. Stock exchanges have been asked to issue a Standard Operating Procedure (SOP) for this within the next 60 days.
F&O deals can also be offset Currently NSE will prepare the reserve list of only BSE listed shares. Then BSE will make a reserve list only of the shares listed on NSE. F&O deals of shares and indices can also be offset.
Positions of high co-related index can also be set off. Information about the fault in the exchange will be given to the other exchange within 75 minutes. According to the SOP, the alternative exchange will start trading the 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, September 28, a holiday, to test the disaster recovery Site. On this day, trading took place in the Futures and Options (F&O) segment along with the capital market from 12 noon to 1 pm. The disaster recovery site is tested so that the stock exchange business can run smoothly even in any emergency situation.
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