Securities and Exchange Board of India (Sebi) on Monday (May 27) released a standard operating procedure (SOP) asking stock exchanges with commodities derivatives segments to inform about trading disruptions within 15 minutes of the event and to extend trading time by 30 minutes under specific outage conditions.
“The intimation shall, inter-alia, inform that trading shall commence from 11:25 pm for a duration of 30 minutes, i.e., extended trading hours would be till 11:55 pm. If intimation is not sent to market participants by 11:10 pm, then there shall be no extension of trading hours,” Sebi said.
The regulatory body further said that market participants will have to be intimated by 4:15 pm or 8:15 pm regarding resumption of trading by 4:30 pm or 8:30 pm. If the bourse has sent the intimation by such time then there will not be any extension of trading hour.
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However, the market hours on the unaffected exchange will not change in the event of an outage on one exchange, according to a circular from Sebi. The guidelines will be effective from July 1, 2024.
For contracts or products traded up to 5 pm/9 pm, Sebi said that if trading resumes to normalcy at least 30 minutes before scheduled market closure (excluding 15 minutes of prior intimation time), trading hours would remain unchanged on that exchange.
As per the standard operating procedure, the stock exchange experiencing the outage is required to notify SEBI right away, and the bourse must notify trading members and market participants via broadcast message and website within 15 minutes of the outage occurring. Further, the affected stock exchange would update about the ongoing outage in the time intervals of 45 minutes from the initial intimation, until normalcy of operations is restored. Extension of trading hours needs to be mentioned in the intimation by the affected stock exchange.
The impacted stock exchange would carry out a variety of tasks and return operations to normal as soon as possible, including from the Disaster Recovery Site.
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Furthermore, if the intimation to market participants about resumption of trading will be sent at 4:45 pm or 8.45 pm then trading hours will be extended by 30 minutes from 5 pm or 9 pm. If intimation is not sent to market participants by 4:45 pm or 8:45 pm then there will be no extension of trading hours. The intimation should also include details as to when investors can/should login to modify their position.
For contracts traded up to 11:30 pm or 11:55 pm, SEBI said market participants will have to be intimated by 10:45 pm or 11:10 pm regarding resumption of trading by 11 pm or 11:25 pm. The intimation to re-start trading can be sent latest until 11:10 pm.
(with PTI inputs)
