SEBI Proposes Measures To Strengthen BCP, Disaster Recovery Framework Of MIIs

The Securities and Exchange Board of India (SEBI) has proposed measures to improve Market Infrastructure Institutions' (MII) Business Continuity Plan (BCP) and Disaster Recovery (DR) systems, focusing on shorter mock drills, stronger primary site resilience and better stock exchange data recovery.

SEBI noted that the existing framework requires Stock Exchanges and Clearing Corporations to conduct full-day DR drills, including an intraday switch from the Primary Data Centre (PDC) to the Disaster Recovery Site (DRS). However, conducting drills throughout market hours can be challenging for MIIs and market participants.

Under the proposed framework, MIIs would conduct DR drills on non-working days. The overall drill would last at least four hours, including the switch from the PDC to the DRS, and would cover all market operation scenarios.

MIIs would also be required to test system disruption scenarios based on their architecture and line of business. The Standing Committee on Technology of each MII would review the comprehensive list of such scenarios.

To improve resilience at the primary site, SEBI has proposed comprehensive stress testing covering transaction volumes, orders per second, various masters, table sizes and other non-transactional components. MIIs would also need to regularly test fault tolerance to ensure that backup components automatically take over if a component, switch or server fails.

The proposals would also require MIIs to monitor system limits, maintain adequate error logs and conduct periodic checks to ensure that the configurations of the PDC, Near Site and DRS remain consistent.

Additionally, stock exchanges would have to create a framework for recovering lost data from Clearing Corporations during disruptions. Stock exchanges and Clearing Corporations would also be required to establish the necessary Standard Operating Procedures.

Public comments have been invited on the proposals until October 5, 2026.