By laksh5382 
Market regulator Sebi on Thursday took measures to ensure uninterrupted trading during technical disruptions, especially in inter-operable areas such as equity, derivatives and currency markets on stock exchanges.
These measures are aimed at strengthening business continuity and disaster recovery mechanisms in stock exchanges.
Under these measures, Sebi said that for similar or correlated products – single stock derivatives, index derivatives – participants can hedge their positions on another exchange during the outage. Margin will be reduced for such posts.
Additionally, exchanges must create “reserve contracts” specifically for stocks or derivatives listed on an exchange to ensure continuity during an outage.
Additionally, exchanges lacking correlated index derivatives should consider creating such indices and launching related contracts to provide hedging options.
The affected exchange has been directed to inform SEBI and the alternate exchange within 75 minutes of the outage. The alternative exchange will activate its continuity plan within 15 minutes of receiving the notification.
Initially, NSE will serve as a backup trading venue for BSE and vice versa. Both the exchanges will jointly prepare a Standard Operating Procedure (SOP) outlining responsibilities, procedures and required system updates.
The SOP has to be submitted to SEBI within 60 days.
The new measures, which will come into effect from April 1, 2025, aim to enhance investor protection and maintain the smooth functioning of markets during unexpected disruptions.