BSE, NSE Gear Up For Special Live Session On January 20 With Disaster Recovery Switch-over

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have announced a special live session scheduled for January 20, featuring an intraday switch-over to a disaster recovery site to enhance operational resilience. The decision, disclosed via a statement on the exchange portals, aims to evaluate the readiness of Market Infrastructure Institutions to manage unforeseen operational disruptions.

The action plan for the live session starts with the pre-open session kicking off at 9 am, followed by the regular market opening at 9:15 am and concluding at 10 am. Subsequently, the disaster recovery site's pre-opening session is set to commence at 11:15 am, with normal market operations beginning at 11:23 am and a closing session wrapping up the day at 12:50 pm.

In the realm of futures and options, the market will initiate at 9:15 am and cease operations at 10 am. However, on the disaster recovery website, the corresponding timings are 11:30 am to 12:30 pm. This meticulous planning ensures a comprehensive assessment of the functionality and efficiency of the disaster recovery infrastructure.

Both BSE and NSE have underscored that all securities, including those with derivative products, will adhere to a maximum price band of 5% during this special session. Securities already subject to a 2% or lower price band will maintain their respective limits. Additionally, close-ended Mutual Funds will implement a 5% price band. For futures contracts, a daily range of 5% has been established, with no room for flexibility for securities or futures contracts on that specific day.

It is important to note that the price bands designated for equity and futures contracts at the beginning of the day in the Equity segment will be equally applicable at the Disaster Recovery site. Any adjustments made to the price bands of options contracts until the close time at the Primary site will be mirrored at the Disaster Recovery site, ensuring consistency and alignment in risk management protocols.

BSE, in its official notice, has assured stakeholders that the transition from its primary site (PR) to the Disaster Recovery site (DR) during the specified timings will be a seamless and well-coordinated process. This initiative is a result of ongoing discussions with the Securities and Exchange Board of India (SEBI) and their Technical Advisory Committee. The primary objective is to assess the preparedness of Market Infrastructure Institutions to effectively handle unexpected operational disruptions and promptly restore operations within the stipulated Recovery Time Objective at the DR Site.

As the financial markets brace for this live session, market participants are advised to stay informed about the revised timings and operational procedures. The move underscores the commitment of BSE and NSE to upholding the highest standards of operational efficiency and resilience, ensuring a robust financial ecosystem.