National Stock Exchange
Technical glitches or technical flaws may be associated with hardware or software of the stock exchange or even connectivity links with brokers.
What is technical glitch or technical flaw?
The technical drawback may be related to the hardware or software of the stock exchange or even connectivity links with brokers. This can affect normal business activities. It is believed that trading in stocks takes place entirely electronically and a glitch can potentially affect millions of investors. There can be several reasons for technical glitch. For example, during the system update of the stock exchange, there may be some problem on the broker end suddenly.
What is the technical flaw today The NSE stopped all trading (equity, futures, currency) at 11.40 pm on Wednesday. NSE said in its official statement, “NSE has several telecom links through two service providers, which provide additional capacity. We have received information from both telecom service providers that there is some flaw in their system, which affects the functioning Is kept.”
Do stock exchanges have a backup plan for such a flaw?
Ideally, trading does not stop for long if a technical glitch occurs. Disaster Recovery Mechanisms have been created for stock exchanges. BSE and NSE have Disaster Recovery Sites sites that work if there is a problem with the main site or server.
How are investors affected by technical glitches
When trading stops due to a technical glitch, investors are affected because they are not able to buy or sell shares.
What is the role of SEBI in such a situation?
The Securities and Exchange Board of India (SEBI) is the regulator of the Indian capital markets and therefore has a major role in ensuring that such disturbances do not occur. SEBI has asked the NSE why the business was not shifted to the ‘disaster recovery site’ after the market system was disrupted due to disrupted connectivity on Wednesday. With this, SEBI has advised NSE to go to the root of the reason for the closure of business.