Now, in case of any disruption in the functioning of the exchange, the market participants, trading members etc. have to be informed within 15 minutes. Not only this, the information has to be given to the regulator immediately. The Securities and Exchange Board of India () have issued Standard Operating Procedures (SOPs) in case of suspension of business in stock exchanges for any reason. According to the SEBI circular, an outage is a stoppage of trading in an exchange. This includes technical errors in the Exchange or causes beyond the control of the Exchange. In such a situation, the exchange is given 15 minutes time to inform the participating trading members and others in the market.
These are 6 important changes
- The condition of one or more sections affected by the following problems is considered as ‘Outage’. Also transactions will continue in other unaffected sections. Other unaffected exchanges will continue to trade in all their market segments.
- Affected exchanges will have to give 15 minutes advance notice to all market participants before trading commences.
- According to the circular, there will be no change in trading hours if trading returns to normal at least one hour before the normal closing of the affected stock exchanges.
- If trading is not normal before one hour or there are some difficulties, all exchanges will have to extend the trading hours for that day by one and a half hours. Exchanges have to notify the extension of trading hours at least a quarter of an hour before the market closes.
- If the problem cannot be corrected within 45 minutes of the exchange being closed, no trades will be made on the affected exchange for that day. Other unaffected exchanges will remain operational for an extended period of time.
- In the event of a disruption during the last hour of trading and 15 minutes before the scheduled close, the trading hours of all exchanges will be extended by one and a half hours.