Sebi issues rules for managing technical glitches, cyber security threats

Stock exchanges to put a structure of financial disincentives for non-compliance by brokers

The Security and Exchange Board of India (Sebi) has issued a framework for stock exchanges and brokers to deal with incidents of malfunction in trading systems, amid rising concerns of technical glitches and cyber security threats.

Under the new framework, any malfunction that causes a slowdown in or variance from normal operations for five minutes or more will have to be reported within an hour of occurrence.

Stock brokers have been directed to submit a preliminary incident report within a day following the incident, mentioning the details and immediate action taken to rectify it, while a root cause analysis report