Technical glitch at NSE: Sebi says will take all remedial measures

Says it has asked NSE to explain reasons for not migrating to its disaster recovery site

Market regulator Sebi on Thursday said it will all necessary measures to ensure rectification of the underlying causes, including addressing institutional deficiencies, that caused trading disruption on the NSE. It further said it has asked NSE to explain the reasons for not migrating to its disaster recovery site.

Sebi said its interoperability framework helped market participants square off their existing positions on other stock exchanges. The regulator it has put in place a comprehensive framework to deal with incidences of technical glitches. It includes monitoring mechanism for ensuring corrective action alongwith appropriate penalty wherever warranted. Trading outages are also reported in global exchanges in the UK, Japan, Australia and New Zealand in the recent past.

Meanwhile, NSE in a statement said the instability at both its telecom service providers led to the outage. “While there was no impact to the trading system, this instability resulted in an impact to the online risk management system, which also is configured in a high availability mode. Given that the online risk management system was unavailable, market functioning could not continue normally and hence had to be shut down,” said spokesperson of the exchange.