Neutral impactSector
SEBI proposes shorter DR drills, stronger resilience for market infrastructure
BusinessLine 2 hrs ago·15 Sept 2026, 2:04 pm
The Securities and Exchange Board of India (SEBI) has proposed new rules to make stock market infrastructure more robust. The regulator wants exchanges, clearing corporations, and depositories to run shorter but more frequent system tests. These drills will simulate market disruptions to ensure that critical systems can recover quickly and continue operating during stress.
This move is significant for investors as it aims to prevent prolonged trading halts or glitches during high-volatility periods. A more resilient market infrastructure reduces the risk of system failures that could lead to significant financial losses or confusion for retail participants.
Market participants should monitor the finalization of these guidelines. Once implemented, exchanges may need to adjust their internal testing protocols, which could lead to temporary operational changes. Investors should look for clarity on how these drills will be conducted and how often they will be performed to gauge the market's future stability.
Excerpt from BusinessLine
The Securities and Exchange Board of India (SEBI) has proposed shorter disaster recovery (DR) drills and stronger operational resilience measures for market infrastructure institutions (MIIs), including stock exchanges, clearing corporations and depositories. Under the proposal, DR drills would be conducted on…Read the original at BusinessLine
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