Archive · 23 Sep 2025
SEBI Proposes Narrowed Rules for Brokerage Tech Glitches
SEBI is updating rules for stockbrokers regarding technical problems with their trading platforms.
The new rules will narrow the definition of a technical glitch and will exclude issues caused by other services like cloud providers.
Brokers with more than 10,000 clients must report glitches.
Brokers have to inform clients and exchanges within two hours.
The goal is to improve trading efficiency and focus on problems within the brokers' systems.
Public feedback is open until October 12; the changes start November 1.
SEBI proposes a narrower definition of 'technical glitch'.
New rules apply to brokers with more than 10,000 clients.
Brokers must notify clients and exchanges within two hours of a glitch.
Exchanges will provide guidelines on server loads and monitoring.
Revised framework is scheduled to come into effect from November 1.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Proposed changes to rules for handling technical glitches in brokers' trading systems
- When
- Public comments accepted until October 12, Revised framework effective November 1
- Where
- India
- Why
- To streamline error reporting and focus on broker-caused issues.
Smaller Brokers
SEBI
Compliance Burden
Smaller Brokers
Compliance burden is expected to be reduced
SEBI
Focus on oversight for larger players.
- Regulatory Body
- Securities and Exchange Board of India (SEBI)
- Subject
- Brokerage Technical Glitch Reporting
- Key Change
- Narrowed Definition of 'Technical Glitch'
- Affected Brokers
- IBT/STWT brokers with >10,000 clients
- Reporting Deadline
- Notify clients/exchanges within 2 hours
- Public Comment Deadline
- October 12
- Implementation Date
- November 1
