CDSL to deposit Rs 3 cr as financial disincentive for technical glitches

The Securities and Exchange Board of India (Sebi) has imposed a financial disincentive of Rs 3 crore on Central Depository Services (CDSL) for technical glitches.

 

In a letter dated April 7, the market regulator directed the depository firm to deposit the amount to the CDSL Investor Protection Fund as the financial disincentive for technical glitches or business disruptions between 2021 and 2024.

 

The depository on Tuesday stated that Sebi’s directions will have no impact on its operations or other activities.

 

Sebi mandates timely disclosures of material events and specifies criteria for determining such material events.

 

For technical glitches, there are provisions of financial disincentives for market infrastructure institutions and other intermediaries.