To enhance market resilience and preparedness for unforeseen operational disruptions, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have announced a special live session on January 20. This unique session involves an intraday switchover to a disaster recovery site, as outlined in a recent statement on the exchange portal. The move aligns awith discussions held with the Securities and Exchange Board of India (SEBI) and their Technical Advisory Committee to assess the readiness of Market Infrastructure Institutions.
Session Details
The special live session is set to commence with the pre-open session at 9 am, followed by the regular market opening at 9:15 am, concluding at 10 am. The disaster recovery site’s pre-opening session will kick off at 11:15 am, with regular market operations starting at 11:23 am and closing at 12:50 pm.
Specifics in the Future and Options Segment
For the future and options segment, the market will open at 9:15 am and close at 10 am, while the disaster recovery website will open at 11:30 am and close at 12:30 pm. Notably, all securities, including those with derivative products, will have a maximum price band of 5 per cent. Securities already in the 2 per cent or lower price band will retain their respective bands. Close-ended Mutual Funds are set to adopt a 5 per cent price band. Futures contracts will operate within a daily range of 5 per cent, with no flexibility for securities or futures contracts on that day.
Consistency in Price Bands
The price bands set for equity and futures contracts at the start of the day in the Equity segment will also be applicable at the Disaster Recovery site. Any alterations in options contracts’ price bands until the close time at the Primary site will be reflected at the Disaster Recovery site.
Smooth Transition and Regulatory Alignment
In its notice, BSE assured that the shift from its primary site (PR) to the Disaster Recovery site (DR) during the specified timings will be a smooth and planned process. This strategic action underscores the commitment of both BSE and NSE to adhere to regulatory guidelines and ensure the efficient management of unexpected operational disruptions. The coordination with SEBI and their Technical Advisory Committee reflects a proactive approach to evaluating and enhancing the readiness of Market Infrastructure Institutions to meet the set Recovery Time Objective at the DR Site.
Summary
The upcoming special live session and disaster recovery preparedness measures by BSE and NSE underscore the importance of robust and resilient market infrastructure. As financial markets evolve, such initiatives instil confidence among market participants and regulatory bodies, fostering a secure and stable trading environment.
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