Friday January 13 2023

News Source: Global Exchanges

Focus: Holidays and Opening Hours and suspensions

Type: General

Country: India

Link: https://bit.ly/3iyd1TV




On 9th January 2023, the Securities and Exchange Board of India (SEBI) issued a notification regarding the Standard Operating Procedure (SOP) for handling of Stock Exchange Outage and the extension of trading hours.

With a view to ensure that any outage at stock exchange(s) is handled in a harmonized and consistent manner, the matter was discussed with the Market Infrastructure Institutions (MIIs) and Standard Operating Procedure about handling of such stock exchange outage in Cash Market and Equity Derivatives segment is detailed below.

  • The stock exchange that suffered the outage (referred to as affected stock exchange) shall intimate about the outage to various stakeholders.
  • The affected stock exchange shall update about the ongoing outage in the time intervals of 45 minutes from the initial intimation.
  • In the event of disruption of trading in one or more market segments of affected stock exchange, qualifying as outage, trading in other unaffected segments of the affected exchange shall continue and all other unaffected exchanges shall continue to trade in all of their market segments.
  • A pre-opening session similar to normal pre-opening session would be conducted for effective price discovery, before resumption of trading. Further, there shall be an advance intimation of at least 15 minutes to various market participants with regard to resumption of trading or start of pre-opening session, as applicable.
  • If the trading on the affected stock exchange does not resume to normalcy in the prescribed time limit the trading hours would get extended/closed for the day depending on the period of outage.
  • Exchanges to put in place a common close-out policy, within 30 days from January 09, 2023, to ensure uniform methodology of settlement of open positions, in case continuous trading didn’t happen in the Cash Market or Equity Derivative Segment of the exchange during the last half an hour of trading for the day due to outage
  • MIIs shall update their Business Continuity Planning (BCP) document subsequent to the instant circular and submit the same to SEBI subsequent to approval of their Governing Boards within 2 months from January 09, 2023.

Click on the above link for further information