The Securities and Exchange Board of India (Sebi) is set to constitute a working group to chart the next technological frontier for the country’s stock exchanges, as the regulator sharpens its focus on market resilience, efficiency and investor protection.
Sebi chairman Tuhin Kanta Pandey said the proposed group would examine how exchange technology must evolve over the next five to ten years, benchmark global best practices and suggest new approaches to strengthening market infrastructure.
“We are going to constitute a working group on how it is going to be our next technological frontier in our stock exchanges,” Pandey told reporters on the sidelines of the 11th International Convention of the Commodity & Capital Participants Association of India in New Delhi.
Pandey said the technological frontier encompasses the use of advanced and emerging technologies to enhance market surveillance, improve operational efficiency and reinforce safeguards for investors. With markets becoming increasingly complex and technology-driven, he underlined the need for exchanges to remain robust and resilient.
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Emphasising Sebi’s zero-tolerance approach to system failures, Pandey said the regulator treats every exchange-related glitch with seriousness, even as he acknowledged that rapid technological change can sometimes lead to disruptions.
He said exchanges are required to conduct detailed root-cause analyses whenever technical issues arise and submit comprehensive standard operating procedures, along with corrective and preventive measures, to the regulator.
Responding to questions on the recent outage at the Multi Commodity Exchange, Pandey said Sebi follows a clearly defined protocol in such cases, including the imposition of strict penalties if disruptions cross prescribed thresholds.
The regulator, he added, is increasingly viewing such incidents through a systemic lens by analysing root causes across exchanges rather than in isolation.
“By identifying commonalities in these glitches, we aim to understand how we can better secure and strengthen our market technology,” Pandey said.
The proposed working group is expected to play a key role in shaping the next phase of India’s market infrastructure, as Sebi seeks to future-proof exchanges amid growing volumes, automation and technological sophistication.
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