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SEBI Eyes Future Tech for Stock Exchanges

Summary

  • SEBI plans a working group for exchange technology's next frontier.
  • Focus on 5-10 year tech evolution and global best practices.
  • Robust technology is critical; SEBI treats glitches seriously.
SEBI Eyes Future Tech for Stock Exchanges

The Securities and Exchange Board of India (SEBI) is set to establish a working group to explore the next technological frontier for stock exchanges. This initiative aims to guide the evolution of exchange technology over the coming 5 to 10 years.

The group will benchmark international best practices and develop new methodologies to fortify market infrastructure. SEBI Chairman Tuhin Kanta Pandey highlighted that technological robustness is paramount, and the regulator takes exchange glitches very seriously.

SEBI mandates detailed root-cause analyses and corrective measures for technical flaws. In cases like the recent MCX outage, SEBI follows a strict procedure, including imposing penalties. The regulator analyzes incidents systemically to identify commonalities and enhance overall market technology security.

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