Sebi announces new rules to make bourses pay for technical glitches

Fine kicks in if there is delay in submission or incomplete submission of root cause analysis (RCA) report within 21 days of the incident

The Securities and Exchange Board of India (Sebi) on Monday issued a detailed framework for penalising market infrastructure institutions (MIIs), which include stock exchanges, clearing corporations, and depositories, for technical glitches.

“MIIs are systemically important institutions as they provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market….For any downtime or unavailability of services, beyond such predefined time, there is a need to ensure that a ‘financial disincentive’ is paid by MIIs as well as their managing directors (MDs) and chief technology officers (CTOs),” the market regulator said in a circular.  

Sebi said the move would encourage MIIs to