 "Put disaster management system in place: Sebi to bourses")
Mumbai: Sebi today asked stock exchanges and depositories to put in place a disaster management system to preserve data and ensure transaction integrity.
“The stock exchanges and depositories should have in place Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) so as to maintain data and transaction integrity,” the market regulator’s guidelines on the issue said.
Apart from DRS, it said, the stock exchanges should also have a Near Site (NS) to ensure zero data loss.
In the event of disaster, the disruption in trading system of stock exchanges/depository system may not only affect the market integrity but also the confidence of investors, SEBI pointed out.
It further asked the market players that the DRS should be set up sufficiently away-in a different seismic zone, from Primary Data Centre (PDC)-to ensure that both DRS and PDC are not affected by the same disasters.
To avoid any unwarranted situation, SEBI said that exchanges and depositories should have Recovery Time Objective (RTO) and Recovery Point Objective (RPO) of not more than 30 minutes and four hours, respectively.
“Any updates made at the PDC should be reflected at DRS/NS immediately (before end of day) with head room flexibility without compromising any of the performance metrics,” it said.
Sebi asked the exchangers and depositories to ensure that “adequate resources” are available at all times to handle operations on a regular basis as well as during disasters.
It also asked that disaster recovery drills should be conducted on quarterly basis. “In case of exchanges, these drills should be closer to real life scenario (trading days) with minimal notice to DR staff involved,” it added.
Sebi also asked the exchanges and depositories to document the results and observations of the drills and forwarded the same along with comments of their governing boards.
The guidelines will be applicable to depositories, stock exchanges having nationwide terminals and stock exchanges having trading on their own platforms.
They have been asked to submit business continuity plan and disaster recovery policy to Sebi within three months.
Sebi further said that the stock exchanges should specifically address their preparedness in terms of proper system and infrastructure in case disaster strikes during business hours.
And depositories should also demonstrate their preparedness to handle any issue which may arise due to trading halts in stock exchanges, it added.
The guidelines also said the solution architecture of PDC and DRS/NS should ensure high availability, fault tolerance, no single point of failure, zero data loss, and data and transaction integrity.
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