Neutral impactSector
Sebi proposes shorter disaster recovery drills for market infra
Economic Times 1 hr ago·16 Sept 2026, 1:11 am
The Securities and Exchange Board of India (Sebi) has proposed a significant change to how market infrastructure institutions (MIIs) test their systems. Currently, these entities must conduct lengthy disaster recovery drills on working days. Sebi now suggests shortening these mandatory tests to a minimum of four hours, but on non-working days. This shift aims to make the testing process more practical and less disruptive to daily market operations.
For investors, this proposal is a positive development. It ensures that the systems handling stock trades and settlements remain robust and reliable without causing unnecessary downtime. By focusing on comprehensive stress testing and fault tolerance, Sebi is strengthening the overall operational resilience of the market. This reduces the risk of technical glitches that could potentially impact trading and settlement efficiency.
Market participants are now invited to review the new guidelines and submit their feedback by October 5. The regulator is expected to finalize these rules based on the comments received, aiming to create a more efficient and secure trading environment for all retail and institutional investors.
Excerpt from Economic Times
Sebi proposes reducing mandatory disaster recovery drills for market infrastructure institutions. These drills will now require at least four hours on a non-working day. The regulator also plans to strengthen operational resilience through comprehensive stress testing. MIIs must regularly test fault tolerance and…Read the original at Economic Times
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- Category: Sector.
- Assessed as a significant, market-relevant update.
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