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SEBI Opens Consultation to Revamp Broker ‘Tech Glitch’ Rules

The draft seeks proportionate oversight by focusing on broker-controlled market‑hour failures at larger online platforms.

Overview

  • Only brokers offering IBT or STWT platforms with more than 10,000 clients would fall under the framework, moving about 457 smaller firms out of scope.
  • The proposed definition excludes outages after trading hours and incidents beyond a broker’s control, with reportable glitches limited to trading and risk‑management systems during market hours.
  • Incident reporting would be standardized via the Samuhik Prativedan Manch portal, with brokers notifying exchanges and clients within two hours, filing a preliminary report by T+1, and submitting a root‑cause analysis within 14 days.
  • SEBI proposes rationalising financial disincentives and simplifying compliance requirements to ease burdens while preserving investor transparency.
  • Public comments are invited until October 12, 2025, and one outlet reports a possible November 1 start date that is not uniformly confirmed in SEBI’s text.