Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey on Thursday said the regulator will analyze problem areas and issues related to the recent technical glitch at National Securities Depository (NSDL), which lasted for several days and disrupted mutual settlements.
NSDL will submit a root cause analysis report, which will be examined by Sebi’s Technical Advisory Committee. The repository experienced system issues in the first week of February, leading to settlement disruptions that were resolved after almost four days.
“Sebi has been fully monitoring the entire period and the second phase is of course that when such issues arise, a detailed analysis is done after the root cause analysis. Whatever necessary action needs to be taken – short term, medium term, long term – is done, including whether suppliers need to be asked to do something more or something needs to be done again because sometimes there are older software systems where some issues can arise due to the growing nature of the market,” Pandey said.
NSDL will submit a root cause analysis report, which will be examined by Sebi’s Technical Advisory Committee. The repository experienced system issues in the first week of February, leading to settlement disruptions that were resolved after almost four days.
“Sebi has been fully monitoring the entire period and the second phase is of course that when such issues arise, a detailed analysis is done after the root cause analysis. Whatever necessary action needs to be taken – short term, medium term, long term – is done, including whether suppliers need to be asked to do something more or something needs to be done again because sometimes there are older software systems where some issues can arise due to the growing nature of the market,” Pandey said.
He was speaking on the sidelines of the NISM-Sebi annual international research conference.
Pandey also complimented the market ecosystem – including depository institutions, brokers and exchanges – for supporting customers and ensuring proper time stamping during the disruption.
“Complexity is also increasing and needs to be managed through a proactive approach, understanding when a particular failure occurs, but dealing with it in a patient, calm manner, with the necessary cooperation, because the system is interconnected,” he added.
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