Sebi Introduces New Guidelines for Capacity Planning and Real-Time Performance Monitoring of MIIs

On Tuesday, the Securities and Exchange Board of India (Sebi) introduced new guidelines for stock exchanges, clearing corporations, and depositories. These guidelines aim to ensure effective capacity planning and real-time monitoring of critical IT systems. According to a Sebi circular, market infrastructure institutions (MIIs) must create frameworks to predict capacity needs using trends, historical data, transaction growth, and business changes.

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Capacity Planning and Monitoring

MIIs are required to maintain sufficient system capacity to manage high volumes, ensuring consistent service availability. The installed capacity should be at least 1.5 times the projected peak load. This projection should consider trends from the past 180 days and other relevant factors. Quarterly stress tests must be conducted to evaluate system performance under heavy loads.

MIIs must submit their methodology details to Sebi within three months after obtaining approval from the Standing Committee on Technology (SCOT) and the Governing Board. Additionally, automated systems should be implemented to monitor and generate alerts for real-time performance issues. Defined thresholds will help in early detection and resolution of these issues.

Immediate Actions for High Utilization

Sebi has instructed stock exchanges and clearing corporations to act promptly if IT component utilization exceeds 75% of installed capacity. Depositories are required to take action if utilization surpasses 75% for 15 consecutive days. A policy for capacity planning and real-time performance monitoring must be established, approved by SCOT and Sebi, ensuring smooth operations and timely resource upgrades.

The guidelines for capacity planning are to be implemented within three months, while all other provisions are effective immediately. This initiative aims to enhance the robustness of the financial market's infrastructure by ensuring that MIIs are well-prepared for future demands.