The Securities and Exchange Board of India – SEBI has said that its guidelines related to the technical glitch framework will apply only to stock brokers who have more than ten thousand registered clients. In a press release issued today, SEBI has said that this move will reduce the overall compliance requirement of about 60 per cent of the stock brokers.
SEBI has said that the decision was taken after a review of the extant technical glitch framework in Stock Brokers’ Electronic Trading Systems. Further, in order to facilitate ease of doing business for the market intermediaries, brokers will no longer be required to report glitches that are taking place outside the stock brokers’ trading architecture, glitches that don’t directly affect the trading functionality and those which have a negligible impact.
Simplifying the reporting requirement, SEBI said it is extending the reporting time of technical glitches from one to two hours and streamlining reporting to all exchanges to a single platform, i.e. the Common Reporting Platform. The regulator has further revised the framework to rationalise the technology compliance requirement based on the size of the stockbroker and their technology dependence.
