Markets regulator Securities And Exchange Board Of India (Sebi) is looking to constitute a working group to identify the next technological frontier for
stock exchanges, its chairman Tuhin Kanta Pandey said on Saturday. The group will focus on how exchange technology should evolve over the next 5-10 years, benchmark global best practices, and develop new methods to strengthen market infrastructure. "We are going to constitute a working group on how it is going to be our next technological frontier in our stock exchanges," Pandey told reporters at the sidelines of the 11th International Convention of the Commodity & Capital Participants Association of India (CPAI). The technological frontier refers to the application of cutting-edge technologies to enhance market oversight, improve operational efficiency, and strengthen investor protection, PTI reported. Pandey stressed that technological robustness is critical, noting that Sebi treats every exchange-related glitch very seriously, the report added. While acknowledging that disruptions can occur due to rapid technological changes, he emphasised the need for stronger safeguards. To address technical flaws, Pandey said, exchanges are required to conduct detailed root-cause analyses and submit comprehensive standard operating procedures (SOPs) and corrective measures, according to PTI. Responding to a query on the recent MCX outage, Pandey said that whenever a technical flaw occurs at an exchange, Sebi follows a clearly defined standard operating procedure, including imposing strict penalties if the issue crosses certain thresholds. He further said the regulator is looking at such incidents from a systemic perspective by analysing root causes across exchanges. "By identifying commonalities in these glitches, we aim to understand how we can better secure and strengthen our market technology," PTI quoted Pandey as saying.
Sebi to set up panel to review exchange tech glitches
Sebi Chairperson Tuhin Kanta Pandey on Friday told ET NOW that the market regulator will constitute a dedicated working group to examine technology glitches at stock exchanges and suggest corrective measures.Pandey said that Sebi is focusing on the root causes of such technology glitches. A common assessment across all exchanges is underway, he said, adding that the working group is being formed as a forward-looking measure, not as a cautionary step. "This is to ensure that as more technology is adopted, outages do not occur," he added. (With PTI Inputs)
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