Sebi proposes shorter DR drills, stronger resilience norms for mkt infrastructure institutions
Economic Times 2 hrs ago·15 Sept 2026, 12:44 pm
The Securities and Exchange Board of India (Sebi) has proposed a significant change to how market infrastructure institutions (MIIs) like stock exchanges and depositories handle emergencies. The regulator wants to shorten their mandatory disaster recovery (DR) drills, which are stress tests to ensure systems can recover from a major failure. Currently, these drills must last a full trading day, but Sebi suggests reducing the duration to a minimum of four hours. These tests will also be conducted on non-working days to better simulate real-world conditions.
This move is aimed at making the financial system more resilient and efficient. By shortening the drills, MIIs can save time and resources, allowing them to focus on improving data recovery processes. For investors, this is a positive development. It suggests that the infrastructure supporting the stock market is becoming more robust and better prepared to handle disruptions, which helps maintain trust in the market's stability.
Investors should watch for the final implementation of these rules by Sebi. The new framework could lead to smoother operations for exchanges and depositories. While this change does not directly impact stock prices, it reinforces the safety net for the broader market, ensuring that trading continues to run without major hiccups even during technical glitches.
Excerpt from Economic Times
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