InvestorQ : What is the new penalty announcements that SEBI has made in case of stock exchange glitches?
Lavanya Subramanian made post

What is the new penalty announcements that SEBI has made in case of stock exchange glitches?

Answer
image
Anamika Sodhani answered.
4 weeks ago
Follow

It is not just about stock exchanges but about all the market infrastructure institutions which include stock exchanges, clearing corporations and even depositories. The detailed framework issued by SEBI will penalize these market infrastructure institutions or MIIs technical glitches that cause losses to investors at large. However, what I understand is that this will be with prospective effect and hence not applicable to the NSE low latency case.

Under the new framework put out by SEBI, these intermediary players will pay a fine of Rs.100,000 per day for delay in submission or incomplete submission of root cause analysis or RCA. There will be higher penalties for failure to address technical glitches, especially in the case of losses, such penalties could even mount to Rs.2 lakhs or Rs.3 lakhs per day.
1 Views