Keen to avoid disruption in commodity bourses due to trading software malfunction, regulator Sebi today listed out several guidelines, including testing of software and penalty on its crash, for brokers and members of exchanges.
Commodities markets have come under the regulatory ambit of Sebi following the merger of FMC with the capital markets regulator in September.
It's felt necessary to strengthen the process of testing of software before deployment, Sebi said in its circular.
The Securities and Exchange Board of India (Sebi) announced a series of steps like testing of software, its approval, undertaking and sharing of Application Programming Interface (API) specifications for smooth functioning of the exchanges.
It also made a provision of penalty in case the software used by these entities fails.
Sebi said the circular will be applicable from April 1, 2016.
