CIRCULAR
SEBI/HO/MRD/TPD/P/CIR/2024/119 September 12, 2024
To,
All Stock Exchanges,
All Clearing Corporations,
All Depositories
Madam/ Sir,
Modifications in Guidelines for Business Continuity Plan (BCP) and Disaster
Recovery (DR) of Market Infrastructure Institutions (MIIs)
1. SEBI has specified the Guidelines for Business Continuity Plan (BCP) and Disaster
Recovery (DR) for Stock Exchanges and Clearing Corporations in Master Circular
No. SEBI/HO/MRD2/PoD-2/CIR/P/2023/171 dated October 16, 2023 at Clause 9.1
of Chapter 2. Additionally, SEBI has specified the Guidelines for BCP and DR for
Depositories in Master Circular No. SEBI/HO/MRD2/PoD-2/CIR/P/2023/166 dated
October 06, 2023 at Clause 4.31. Further, SEBI has specified the Guidelines for
Business Continuity Plan (BCP) and Disaster Recovery (DR) for Commodity
Derivatives Segment in Master Circular No. SEBI/HO/MRD/MRD-PoD-
1/P/CIR/2023/136 dated August 04, 2023 at Clause No. 16.4.
2. Based on consultations with MIIs and recommendations of the Technical Advisory
Committee (TAC) of SEBI, the following provisions of aforesaid circulars on BCP
and DR for MIIs stand modified as under: -
2.1 Clause 9.1.1.2 of Chapter 2 of the SEBI Master Circular dated October 16, 2023,
Clause 4.31.1.2 of Section 4 of the SEBI Master Circular dated October 06,
2023 and Clause 16.4.2(b) of Section 16 of the SEBI Master Circular dated
August 4, 2023 shall be read as under:
"For Stock Exchanges: Apart from DRS, all Stock Exchanges shall also have a
Near Site (NS) to ensure near zero data loss.
For Clearing Corporations and Depositories: Apart from DRS, all Clearing
Corporations and Depositories shall also have a Near Site (NS) to ensure zero
data loss.”
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2.2 Clause 9.1.1.4 of Chapter 2 of the SEBI Master Circular dated October 16, 2023,
Clause 4.31.1.4 of Section 4 of the SEBI Master Circular dated October 06,
2023 and Clause 16.4.2(d) of Section 16 of the SEBI Master Circular dated
August 4, 2023 shall be read as under:
“The manpower deployed at DRS shall have the same expertise as available at
PDC in terms of knowledge/ awareness of various technological and procedural
systems and processes relating to all operations such that DRS can function at
short notice, independently. MIIs shall have sufficient number of trained staff at
their DRS so as to have the capability of running live operations from DRS
without involving staff of the PDC.”
2.3 Clause 9.1.2.4 of Chapter 2 of the SEBI Master Circular dated October 16, 2023,
Clause 4.31.2.4 of Section 4 of the SEBI Master Circular dated October 06,
2023 and Clause 16.4.3(d) of Section 16 of the SEBI Master Circular dated
August 4, 2023 shall be read as under:
“MIIs shall ensure that the Recovery Point Objective (RPO) - the maximum
tolerable period for which data might be lost due to a major incident - shall be
near zero. Further, MIIs shall have a documented methodology for data
reconciliation when resuming operations from DRS or any other site as
applicable.”
2.4 Clause 9.1.2.5 of Chapter 2 of the SEBI Master Circular dated October 16, 2023,
Clause 4.31.2.5 of Section 4 of the SEBI Master Circular dated October 06,
2023 and Clause 16.4.3(e) of Section 16 of the SEBI Master Circular dated
August 4, 2023 shall be read as under:
“For Stock Exchanges: Solution architecture of PDC and DRS / NS shall ensure
high availability, fault tolerance, no single point of failure, near zero data loss,
and data and transaction integrity.
For Clearing Corporations and Depositories: Solution architecture of PDC and
DRS / NS shall ensure high availability, fault tolerance, no single point of failure,
zero data loss, and data and transaction integrity.”
2.5 Clause 9.1.2.8 of Chapter 2 of the SEBI Master Circular dated October 16, 2023,
Clause 4.31.2.8 of Section 4 of the SEBI Master Circular dated October 06,
2023 and Clause 16.4.3(h) of Section 16 of the SEBI Master Circular dated
August 4, 2023 shall be read as under:
“For Stock Exchanges: Synchronous replication or appropriate replication
between PDC and NS shall be implemented to ensure near zero data loss.
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Asynchronous replication may be implemented between PDC and DRS and
between NS and DRS.
For Clearing Corporations and Depositories: Synchronous replication between
PDC and NS shall be implemented to ensure zero data loss. Asynchronous
replication may be implemented between PDC and DRS and between NS and
DRS.”
3. MIIs are advised to collaborate in developing a standardized definition of “near zero data
loss” and submit the same to SEBI after taking approval from their respective Standing
Committee on Technology (SCOT).
4. MIIs are required to take necessary steps to put in place systems for implementation of
this Circular, including necessary amendments to the relevant bye-laws, rules and
regulations, if any.
5. The provision at para 2.2 of this Circular shall come into force with immediate effect. The
remaining provisions of this Circular shall come into effect 2 months from the date of this
circular.
6. This Circular is issued with the approval of the Competent Authority.
7. This Circular is being issued in exercise of the powers conferred by Section 11(1) of
Securities and Exchange Board of India Act, 1992 read with Regulation 51 of
Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations)
Regulations, 2018 and Section 19 of the Depositories Act, 1996 read with Regulation
97 of Securities and Exchange Board of India (Depositories and Participants)
Regulations, 2018 to protect the interest of investors in securities market and to
promote the development of, and to regulate the securities market.
8. This Circular is available on SEBI website at www.sebi.gov.in at “Legal Framework
– Circulars”.
Yours faithfully,
Ansuman Dev Pradhan
General Manager
Market Regulation Department
Email: ansumanp@sebi.gov.in
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