TaxTMI 
TaxTMI 
Review of Framework to address the ‘technical glitches’ in Stock Brokers’ Electronic Trading Systems’
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....es also issued detailed guidelines in this regard on December 16, 2022. 2. SEBI received several representations from the various stakeholders and Industry forum regarding need to review the present framework on Technical glitches. Based on the representation received and the analysis of the technical glitch data, a public consultation paper was prepared and disseminated on SEBI website to obtain views from all the stakeholders. A views/feedback obtained on a consultation paper was analysed and discussed with stakeholders. 3. The extant technical glitch framework for the stock brokers is thus modified. The modification is carried out based on the following broad principles: 3.1 Ease of compliance: The eligibility criteria has....
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....es or products or services, directly or indirectly related to trading and risk management, occurred during trading session of stock exchange. The malfunction in the systems of stock brokers or the one outsourced from any third parties, which may lead to either stoppage, slowing down or variance in the trading and risk management functions such as log-in, order placement (including modification, cancelation, execution, confirmation, status), allocation and viewing of margin/ collateral/ funds etc., for a contiguous period of five minutes or more." 5.2 The above definition of technical glitches is subject to the condition that the following types of technical issues in the system of stock brokers shall not be considered as technical ....
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....n) while other mode of the trading is functioning in proper manner • A technical glitch that is minor in nature or has a minor impact on the seamless operations of the stock brokers. Stock exchanges shall issue detailed guidelines in this regard in consultation with SEBI. 6. Applicability of framework: 6.1 The framework shall be applicable to the stock brokers providing IBT/STWT trading platforms and having more than 10,000 registered clients (excluding closed accounts) as on 31st March of previous financial year. 6.2 Stock exchange shall issue detailed guidelines in this regard and disseminate the list of applicable stock brokers. 7. Reporting Requirements: 7.1 Stock brokers shall info....
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....ing is prerequisite for stock brokers to provide continuity of services to their clients. Stock brokers shall do capacity planning for entire trading infrastructure i.e. server capacities, network availability, and the serving capacity of trading applications. 8.2 Stock brokers shall monitor peak load in their trading applications, servers and network architecture. 8.3 Stock exchanges shall issue detailed guidelines with regard to capacity planning, peak load, and new capacity required to tackle future load on the system of the stock brokers. The extant guidelines shall be rationalised based on the size of the stock brokers & their technology dependency. 9. Software testing and change management 9.1 Software ap....
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.... of the stock brokers & their technology dependency ensuring the following i BCP and DRS shall not be applicable to small size stock brokers. ii Setting up of DR site in different seismic zones iii Frequency of DR drill and trading from DR site iv Defining Recovery Time Objective (RTO) and Recovery Point Objective (RPO) and defining the term "Disaster" for the implementation of the DR. v Requirement for the coverage of BCP-DR during the System Audit and ISO certification requirements. 12. Stock exchanges shall rationalise and revise the current structure of the financial disincentives considering the applicable exemption for technical glitches, type of glitches (major or minor) and the frequen....