New Delhi: Capital markets regulator Sebi on Monday asked commodity derivatives exchanges to put in place a disaster recovery policy to preserve data and ensure transaction integrity.
They have been directed to submit their policy in this regard along with a detailed plan of action for implementation by April 1, 2016.The move comes after erstwhile commodity markets regulator FMC (Forward Market Commission) got merged with Sebi (Securities and Exchange Board of India) on September 28.
"While technological developments and innovations bring efficiency to the markets, they may also pose certain risks to the stability and integrity of the markets, if not identified and managed effectively," Sebi said in a circular.
"Further, any events of disaster will disrupt trading systems adversely, thereby impacting the market integrity and the confidence of investors," it added. The markets regulator has directed commodity exchanges to put in place a robust Business Continuity Plan (BCP) and Disaster Recovery (DR) policy to ensure continuity of operations.
Also, these exchanges will have to conduct annual system audit as per the prescribed audit framework, which includes, audit process, auditor selection norms and audit report guidelines.
According to Sebi, the first annual system audit of exchanges will be conducted by June 30, 2016 for the ongoing fiscal 2015-16 and the 'Systems Audit Report' and compliance status should be placed before the governing board of the bourse and communicated to the regulator along with their comments.
"The exchanges shall have BCP and DR policy in place and implement the broad guidelines regarding the setting up of Disaster Recovery Site (DRS) and Near Site (NS), Configuration of DRS/NS with Primary Data Centre, DR drills/ Testing, BCP DR policy document," the regulator noted.
“The exchanges shall submit their BCP DR policy along with detailed plan of action for implementation to Sebi on or before April 1, 2016," it added.
