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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Business Continuity for Interoperable Segments of Stock Exchanges

28-Nov-2024 | SEBI/HO/MRD/TPD/P/CIR/2024/167

SEBI has issued a circular regarding Business Continuity for Interoperable Segments of Stock Exchanges effective from 1st April, 2025. In order to strengthen Business Continuity Framework, systems are required to be implemented for addressing possible outage at stock exchanges. By virtue of this circular, various guidelines regarding interoperable segment of stock exchanges (i.e. Cash Market/ Equity Derivatives/ Currency Derivatives/ Interest Rate Derivatives etc) are notified, some of them are below- 1. In case of availability of identical or correlated trading products on another trading venue, then participants can hedge their open positions by taking offsetting positions in identical or correlated indices on other exchange. (For Common scrips, derivatives on single stocks or correlated indices, currency derivatives segment and interest rate derivatives) 2. Reserve contracts for scrips may be created by stock exchanges and single stock derivatives not traded on their exchange but available on other exchange, need to be invoked at the time of outage on their exchange. 3. Reporting needs to be done by the affective exchange to alternative trading venue and SEBI withing 75 minutes of occurrence of impact. 4. For beginning, NSE would act as an alternative to BSE and vice-a-versa. For more information, kindly refer to the attached circular.

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