SEBI Consultation Paper On Technical Glitches; Aims To Reduce Burden On Small Brokers

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00:00important news regarding the brokers. Now, Sebi has issued consultation paper whereby

00:05remember there were already rules there for technical glitches for stock brokers earlier.

00:12But now Sebi has once again come up with consultation paper because in 2022 when the

00:18norms came, there was some opposition especially by the small brokers. Now, the small brokers were

00:23saying that one kind of approach, one scale approach cannot be there for all the brokers

00:28and therefore the suggestion was given that there should be some rationalization and therefore

00:34the definition of technical glitches as far as brokers are concerned. Now, that has been changed

00:40and that will be considered only during the market hours. Anything happens outside that even KYC

00:47will not be part of the definition. And more than that, once this consultation paper becomes norm

00:54around 457 small brokers will be out of the purview of these technical glitches norms earlier. All the

01:02brokers were coming in the ambit. And now if a technical glitch happens, what is the procedure?

01:07The procedure is that within two hours, you have to give report to the market regulator and preliminary

01:13report needs to be given to the regulator within T plus one day, meaning the occurrence plus one day.

01:20And within 14 days, you have to tell the regulator what actually happened. You have to submit the root

01:27cause analysis report. The idea is to have a first of November as deadline. Now we need to wait and see

01:33how soon these norms actually comes into effect.

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