The Securities and Exchange Board of India, (SEBI) on September 20, 2024, issued Ease of Doing Business in the context of Standard Operating Procedure for payment of “Financial Disincentives” by Market Infrastructure Institutions (MIIs) as a result of Technical Glitch.
SEBI has updated its procedures for handling technical glitches by Market Infrastructure Institutions (MIIs). While financial penalties will still be imposed on MIIs when system downtime exceeds predefined thresholds, the imposition of penalties on individuals, like Managing Directors and Chief Technology Officers, has been removed. MIIs must now provide SEBI with a compliance report within 90 days of a disruption, disclosing any penalties paid. SEBI reserves the right to assess individual responsibility and take action if necessary, though penalties for glitches will focus on the institution itself.
[Notification No. SEBI/HO/MRD/TPD-1/P/CIR/2024/124]
