SEBI issues guidelines for Business Continuity Plan and Disaster Recovery of Market Infrastructure Institutions

Mar 27, 2019 | by Avantis RegTech Legal Research Team


The Securities Exchange Board of India (SEBI) on March 26, 2019, with the recommendation of Technical Advisory Committee (TAC), has issued guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) of Market Infrastructure Institutions (MIIs). SEBI vide Circular dated April 13, 2012 and Circular dated June 22, 2012 had prescribed framework for BCP and Disaster Recovery Site (DRS) for stock exchanges and depositories. SEBI found that the Clearing Corporations are important infrastructure institutions, and decided that framework on BCP and DR should also be applicable to all the clearing corporations.

SEBI modified the framework for BCP and DR as under:

•The Stock exchanges, clearing corporations and depositories (collectively referred as MIIs) should have in place BCP and DRS so as to maintain data and transaction integrity.

•The stock exchanges and clearing corporations should also have a Near Site (NS) to ensure zero data loss whereas the depositories should also ensure zero data loss by adopting a suitable mechanism.

•The DRS should preferably be set up in different seismic zones and in case of operational constraints minimum distance of 500 Km shall be ensure between Primary Data Centre (PDC) and DRS so that both are not affected by the same disaster.

•The manpower deployed at DRS/NS should have same expertise as available at PDC in terms of knowledge or awareness of various technological and procedural systems and processes relating to all operations. 

SEBI specifies the configuration of DRS or NS with PDC and hardware, system software, application environment, network and security devices and associated application environments of DRS / NS and PDC shall have one to one correspondence between them.

The DR drills should also be conducted on a quarterly basis. In case of exchanges and clearing corporations, these drills should be closer to real life scenario (trading days) with minimal notice to DR staff involved.

Stock exchanges, clearing corporations and depositories, depending upon their line of business shall decide the definition of ‘Disaster’ which requires them to move from the PDC to DRS and include the same in the BCP-DR Policy. 

[Circular No.: SEBI/HO/MRD/DMS1/CIR/P/2019/43]

Click here to download the Circular.

 


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