The Hindu : Business : SEs to report system hiccups to SEBI

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SEs to report system hiccups to SEBI

Special Correspondent

Advises amendments to bye-laws

MUMBAI: The Securities and Exchange Board of India (SEBI) on Thursday asked stock exchanges to report to the regulator all instances of hanging, slowdown and breakdown and any other problem in the computerised trading system, even if the disruption is less than five minutes.

"Further, in the case of stoppage beyond five minutes, the exchange should also explain and report to SEBI about the incident as well as the remedial measures taken. The stock exchange shall also issue a press release in this regard for greater transparency and in the interest of investors,'' SEBI advised all stock exchanges in a circular.

The regulator asked stock exchanges to make necessary amendments to the bye-laws, rules and regulations for the implementation of these instructions. Stock exchanges were instructed to bring the provisions of this circular to the notice of the member brokers and clearing members of the Exchange and also to disseminate the same on the website.

Indicating an earlier implementation of the circular, SEBI also asked exchanges to communicate to it the status of the implementation of the provisions of this circular in Section II, item no.13 of the Monthly Development Report for October 2006.

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