In a significant move aimed at enhancing market resilience and ensuring business continuity, the Securities and Exchange Board of India (SEBI) announced on November 28 that the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will act as alternative trading platforms for each other starting April 1, 2025. The directive, issued via an official circular, underscores SEBI’s commitment to safeguarding seamless trading operations.
Key Provisions and Implementation Plan
SEBI clarified that after extensive consultations with both exchanges, it has been decided that the NSE will function as an alternative trading venue for the BSE, and vice versa. To facilitate this arrangement, the exchanges are required to jointly develop a comprehensive Standard Operating Procedure (SOP).
The SOP will outline:
- The contingency plan to be activated in case of an outage on either exchange.
- Detailed workflows and activities involving the impacted exchange and its designated alternative.
- Clearly defined roles and responsibilities for each entity to ensure smooth coordination.
SEBI has mandated that this SOP be submitted to the regulator within 60 days of the circular’s issuance to allow for adequate planning and regulatory review.
Coverage of Interoperable Segments
The circular also specifies that the arrangement will encompass key interoperable segments of both exchanges, including:
- Cash markets.
- Equity derivatives.
- Currency derivatives.
- Interest rate derivatives.
This initiative reflects SEBI’s proactive approach to mitigating systemic risks in India’s financial markets and ensuring uninterrupted trading operations for market participants.
By implementing these measures, SEBI aims to bolster the robustness of India’s capital markets while fostering trust among investors and stakeholders. For more such updates stay connected to finvestingnews.com.