SEBI lays down SOP for Stock Exchanges to report outage and extend trading hours
The Securities and Exchange Board of India (“SEBI”) has laid down Standard Operating Procedure for handling of Stock Exchange Outage and extension of trading hours to ensure that any outage at stock exchange(s) is handled in a harmonized and consistent manner.
Stock Exchange Outage means stoppage of continuous trading, either suo moto by exchange or by virtue of reasons beyond control of stock exchange.
The stock exchange that suffers outage must intimate Market Participants / Trading Members / Other Market Infrastructure Institutions and SEBI immediately in prescribed manner.
In the event of disruption of trading in one or more market segments of affected stock exchange, qualifying as outage, trading in other unaffected segments of the affected exchange shall continue and all other unaffected exchanges shall continue to trade in all of their market segments.
Exchanges must put in place a common close out policy, to ensure uniform methodology of settlement of open positions, in case continuous trading didn’t happen in Cash Market or Equity Derivative Segment of the exchange during last half an hour of trading for the day due to outage.
