Overview

• The proposal limits reportable incidents to failures in a broker’s own trading or risk-management systems during market hours, excluding after-hours issues and outages caused by third-party providers.
• Coverage would apply only to brokers offering IBT or STWT platforms with more than 10,000 clients, removing about 457 smaller firms from the framework.
• Reporting would move to the Samuhik Prativedan Manch portal, with brokers required to alert exchanges and clients within two hours, file a preliminary report by T+1, and submit a root-cause analysis within 14 days.
• SEBI proposes rationalising financial disincentives, including avoiding penalties for incidents that do not disrupt a broker’s ability to serve clients.
• Exchanges would publish incident disclosures, public feedback is invited until October 12, and some reports suggest the rules could take effect on November 1 if finalised.