Jobnotifys.in : Latest Govt Jobs Online Form Result
Failure to address glitches will attract a penalty of Rs 200,000 per day for first 15 working days
The Securities and Exchange Board of India (Sebi) has made it mandatory for institutions and their officials to pay for failure to provide services. Market infrastructure institutions (MIIs), including stock exchanges, clearing corporations and depositories will be liable for technical glitches in a move that “will encourage MIIs to constantly monitor the performance and efficiency of their systems and upgrade/enhance them,” Sebi said. The new rules come into effect from August 16.
Technical glitches include malfunctioning in hardware, software or any products and services provided by market infrastructure institutions, Sebi clarified in its circular.
“MIIs are systemically important institutions as they provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market….For any downtime or unavailability of services, beyond such predefined time, there is a need to ensure that a ‘financial disincentive’ is paid by MIIs as well as their managing directors (MDs) and chief technology officers (CTOs),” Sebi said in a circular.
A comprehensive root cause analysis (RCA) report, outlining the reasons for a technical glitch, will have to submitted to Sebi within 21 days of an incident. The market infrastructure institutions will have to pay Rs 1,00,000 per day in case of delayed or incomplete submission of this report.
A failure on the part of market infrastructure institutions to address the technical glitches will attract a penalty of Rs 200,000 per day for the first 15 working days, Rs 300,000 per day for the next 15 working days and Rs 25 lakh thereafter, Sebi said.
If the concerned institution fail to restore normal operations within 75 minutes, except in cases where the business disruption has been declared as a “disaster”, they will have to pay a penalty of Rs 50 lakh and if the disruption extends beyond three hours, the penalty will be Rs 1 crore, Sebi added.
It may be recollected that trading was halted on the NSE on February 24 due to a technical glitch that prevented updation of live price quotes of the Nifty and Bank Nifty indexes.
