SEBI to ensure seamless trading: BSE, NSE to act as alternative trading venue on outage on one exchange | Stock Market News

Capital markets regulator Securities and Exchange Board of India (SEBI), on Thursday, November 28, announced measures to ensure seamless trading during technical outages, particularly in interoperable segments such as equities, derivatives, and currency markets on stock exchanges. The measures aim to strengthen the business continuity and disaster recovery mechanisms of the two stock exchanges- BSE and NSE. 

Under these measures, SEBI said that for identical or correlated products– single stock derivatives, index derivatives — participants can hedge their positions on another exchange during an outage. Margins for such positions will be netted off. Exchanges must also create “reserve contracts” for stocks or derivatives exclusively listed on one exchange to ensure continuity during outages.

Also Read: Stock Market Crash: Nifty 50 slips below 24K, Sensex tanks 1200 points – 5 reasons why Indian stock market fell today

Further, exchanges lacking correlated index derivatives must consider creating such indices and introducing related contracts to provide hedging options. The affected exchange has been directed to notify SEBI and the alternative exchange within 75 minutes of an outage. The alternative exchange will activate its continuity plan within 15 minutes of receiving the intimation.

Initially, NSE will serve as the backup trading venue for BSE and vice versa. Both exchanges will jointly prepare a Standard Operating Procedure (SOP) outlining responsibilities, processes, and required system updates. The SOP must be submitted to SEBI within 60 days. The new measures, which will take effect on April 1, 2025, aim to enhance investor protection and maintain the smooth functioning of markets during unforeseen disruptions.

Also Read: Stock market crash: Prabhudas Lilladher cuts Nifty 50 year-end target to 27,381, recommends ‘buy on dips’ for long term

Stock market today

Equity benchmark indices Sensex and Nifty surrendered early gains to plunge nearly 1.50 per cent, weighed down by intense selling in market heavyweights Infosys, RIL, and HDFC Bank amid a mixed trend in global equities. Deep losses in IT, auto, and consumer durable stocks amid escalating geopolitical tensions also contributed to weak investors’ sentiment.

The BSE benchmark Sensex slumped 1,190.34 points or 1.48 per cent to settle at 79,043.74. During the day, it tanked 1,315.16 points or 1.63 per cent to 78,918.92. Investors’ wealth fell by ₹1,50,265.63 crore to ₹4,42,98,083.42 crore. The NSE Nifty tumbled 360.75 points or 1.49 per cent to 23,914.15.