Financial disincentives enforce MIIs and senior executives to promptly rectify technical glitches, with payments directed to investor protection funds. SEBI mandates an SOP defining Technical Glitch as malfunction in MII hardware, software or services causing stoppage or variance in operations, requiring prompt reporting to SEBI, a preliminary report within 24 hours and a comprehensive Root Cause Analysis with corrective actions within 21 days. SEBI's Technical Advisory Committee may review RCAs and require further action. Failure to submit adequate RCA or to remediate within TAC/SEBI timelines triggers graduated Financial Disincentives, including per-day penalties, slab-wise payments, and percentage-based penalties on MIIs and on the MD and CTO, payable to investor protection or settlement guarantee funds.