SEBI releases SOPs for handling commodity derivatives exchange outages

Under this directive, stock exchanges have to inform the market participants within 15 min of any disruption in trade

   
sebi releases sops for commodity derivatives exchange

The Securities and Exchange Board of India (SEBI) has issued SOPs (standard operating procedures) for the stock exchanges having the commodity derivatives segment to inform the market participants or trading members within 15 minutes of any disruption in trade.

The information about such outages should be given immediately after the occurrence of the outage, SEBI stated in its latest circular.

The statement added that these SOPs are in continuation of SEBI’s previously issued guidelines notified on January 09, 2023.

The market regulator defined such disruptions as the stoppage of continuous trading, either suo moto by exchange or by virtue of reasons beyond the control of the stock exchange. The circular added that if the outage occurs on one exchange, market hours shall remain unchanged on unaffected exchange/s.

According to the latest order, if the 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, i.e., market participants will have to be intimated by 10:45 pm or 11:10 pm regarding resumption of trading by 11:00 pm or 11:25 pm.

For contracts or products traded up to 5 pm/9 pm, the regulator added 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.

The notification further added that the 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 intimation is not sent to market participants by 11:10 pm, then there shall be no extension of trading hours, said the SEBI notification.

According to the circular the guideline will be effective from July 1, 2024.

Leave a Reply

Your email address will not be published. Required fields are marked *