Sebi also proposed that penalties should not apply in cases where glitches do not disrupt services for clients | Photo Credit: Hemanshi Kamani/Reuters
The Securities and Exchange Board of India (Sebi) Has proposed changes to its rules on handling technical glitches at stock brokers ‘systems’ system, including redefining what constitutes a glitch, Easing Financial disinstitutes, and Limiting the rules of the rules to Larger brokers.
The markets regulator has suggested narrowing the definition of “Technical Glittches” to Exclude Malfunctions that Haappen after after trading hours or that outside a broker’s contrarol. It is also proposed that penalties should not apply in cases where glitches do not disrupt services for clients.
The revised framework would apply only to brokers offering internet-based and securities trading through wireless technology (ibt/stwt) platforms and having more clients and having more clients as of the custom Financial year. This would exclude Around 457 Smaller Stock Brokers from the Ambit of the Framework.
“This will result in ease of compliance for such stock brokers, considering their low clientele base and relatively less technology daminance in their trading services,” SABI SABI SABI SABI SABI SAD IN A Draft Paper On Monday. ,
Public comments on the proposals have been invited until October 12.
Centralized Portal
To enhance transparency and cut duplication, the regulator has proposed Centralising Glich Reporting Through a Single Portal. Brokers would be required to inform both exchanges and their clients within two hours of any increasent, while exchanges would, in turn, disclose the details on their websites.
Brokers would also be required to update clients through their own websites, sms, emails, or pop-up alerts. In addition, they would need to submit a preliminary increasent report to the exchange by the next trading day (t+1) and submit a detailed root cause analysis with 14 cause Analysis with 14 Calendar days. Both reports would be routed through a new common portal called Samuhik Purativedan Manch.
The move follows Concerns Raised by Industry Participants Over the Regulation’s Scope and Rigidity. The earlier framework on Technical Glittches was rolled out in November 2022, with deta detailed guidelines is issued by exchanges the following month.
Published on September 22, 2025