Regulator Sebi will discuss with stock exchanges tomorrow measures that need to be taken to avoid recurrence of ‘technical glitches’ at bourses, as also steps to bolster cyber security framework, regulatory and market sources said. The move comes in the wake of a technical glitch at country’s largest stock exchange NSE, which led to halting of trading activities for over three hours on July 10. The Securities and Exchange Board of India (Sebi) will discuss issues, including the exchanges’ back-up arrangements, disaster recovery plans and what more needs to be done to avoid such recurrences, regulatory sources said.
Among others, the regulator may also review norms pertaining to improve risk management to tackle volume at stock exchanges. Besides, the regulator will discuss measures to strengthen cyber security framework. Recently, slew of dreaded ransomware attacks, like WannaCry and Petya, had impacted the computer systems worldwide. Meanwhile, the National Stock Exchange (NSE) has already submitted its report on the technical glitch to Sebi.
Earlier, NSE’s internal technical team and external vendors examined the matter in order to analyse and identify the cause that led to the issue and to suggest solutions to prevent repeat of such instances. The regulator, earlier, had sought a detailed report from NSE on the matter and had asked the exchange to have a review of their ‘Business Continuity Plans’.