SEBI/HO/MRD/TPD/P/CIR/2024/167 November 28, 2024 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MRD/TPD/P/CIR/2024/167 November 28, 2024 To All Stock Exchanges All Clearing Corporations (Except Commodity Derivatives Exchanges and Clearing Corporations) Sir/Madam, Business Continuity for Interoperable Segments of Stock Exchanges Clause 9 of Chapter 2 of SEBI Master Circular dated October 16, 2023, for Stock Exchanges and Clearing Corporations as well as Clause 4.31 of Section 4 of SEBI Master Circular dated October 06, 2023, for Depositories provide guidelines for Business Continuity Planning (BCP) and Disaster Recovery Site (DRS) for Market Infrastructure Institutions (MIIs). In order to strengthen the Business Continuity framework of MIIs, in the first phase, Software as a Service Model was stipulated for Risk Management Systems of the Clearing Corporations (SEBI circular dated December 20, 2023). In the second phase, discussions were held with exchanges/ Clearing Corporations (CCs) to put in place systems to address possible outage at stock exchanges. In case of outage of a trading venue (i.e. stock exchange) during trading hours, the participants with open positions would be exposed to price risk on such open positions, as there could be material news flow during that time. In such a case, the multi exchange set up along with interoperability among Clearing Corporations could be leveraged to provide an alternative trading venue to end investors. A working group of stock exchanges, CCs and representative qualified stock brokers (QSBs) was created to deliberate the matter. In view of the deliberations of the aforesaid working group and subsequent discussions with Secondary Market Advisory Committee of SEBI, following has been decided for the interoperable segments of stock exchanges (i.e. Cash Market/ Equity Derivatives/ Currency Derivatives/ Int