SEBI to Ensure Smooth Trading: BSE and NSE to Serve as Alternative Platforms During Exchange Outages
The Securities Exchange Board of India (SEBI) announced new measures on 28th November 2025 to ensure trading continuity in case of technical outages at stock exchanges. This proactive measure, which focuses on strengthening the business continuity and disaster recovery mechanism, reducing disruptions, and safeguarding investor interest during technical outages, will come into effect from 1st April 2025.
The Role of BSE and NSE as Alternative Trading Venues
Under the new framework implemented by SEBI, BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) will serve as alternative trading venues for each other. This collaborative decision, made with careful consideration by both the stock exchanges, ensures that in case of a technical outage at either of the stock exchanges, the other will serve as a reliable trading platform. This inter-operability will cover equity derivatives, cash, interest rate, and currency derivate, further strengthening the trading ecosystem.
Standard Operating Procedure (SOP) for Outages
SEBI mandates the BSE and NSE to prepare a Standard Operating Procedure (SOP) to define responsibilities, processes, and required system updates. The SOP will outline the roles and responsibilities of both stock exchanges, the process of activities during technical outages, and required system changes. If the stock exchange faces an outage, SEBI and the alternative exchange must be informed within 75 minutes, and the alternative exchange will activate the continuity plan within 15 minutes of receiving the request.
New Framework Implementation Timeline
The new framework will come into effect on the 1st April 2025. This period will give the stock exchanges and clearing cooperations sufficient time to develop the required infrastructure and implement the necessary amendments to facilitate the implementation of the new SEBI framework.
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