NSE Tech Glitch: Tech glitch: Sebi asks NSE to expedite detailed root cause analysis

Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday clarified that it has already advised NSE to expeditiously carry out a detailed root cause analysis of the trading halt on January 24 and also to explain the reasons for trading not migrating to the disaster recovery site, as per norms. The regulator said it would take all necessary measures to ensure rectification of the underlying causes including addressing institutional deficiencies.

Sebi rules mandate stock exchanges to carry out live trading from disaster recovery site for two consecutive days every six months apart from having to conduct quarterly disaster recovery drills.

The regulator said, NSE on February 24 informed it about the issue of trading halt at around 11.30 am that it had issued a communication to the market for halting trading from 11.40 am due to issues with the links with telecom service providers.

“It is pertinent to note that despite the trading halt, the framework of interoperability put in place by SEBI facilitated market participants to continue their transactions at other stock exchanges, thereby allowing them to seamlessly trade / square off their existing positions. The same is evident from the fact that the trading turnover at BSE in equity segment jumped to Rs. 40,600 crore on February 24,2021 as compared to an average daily trading turnover of approximately Rs. 5,200 crore during the previous 30 days,” Sebi said.