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Technical Glitch Framework: SEBI Proposes Changes for Stockbrokers

23 September 20251 min read
BANKING & FINANCETechnical GlitchFramework: SEBIProposes Changesfor Stockbrokers23 September 2025safalsetu.com

Why in the news

Today every malfunction in a broker’s electronic trading system counts as a technical glitch, whatever its size. SEBI proposed a narrower framework.

Proposed changes

AreaProposal
ApplicabilityBrokers with internet-based trading and over 10,000 clients
PenaltiesNone if client services are not materially affected
TransparencyExchanges to rationalise disincentives and publish glitch instances on websites
CapacityAdequate infrastructure; monitor peak load on applications, servers and networks

Exam angle

  • Regulator: SEBI.
  • Client threshold: 10,000; brokers excluded: 457.

Test yourself

1. Under SEBI's proposed technical glitch framework, brokers need how many clients to be covered?

Only brokers with over 10,000 clients as of 31 March are covered.

2. How many small stockbrokers would be excluded from SEBI's proposed technical glitch framework?

The proposal excludes 457 small stockbrokers.

3. Which malfunctions would SEBI's proposed definition of technical glitch exclude?

After-hours malfunctions and issues beyond brokers' control are excluded.

This topic is part of Daily Current Affairs 23 September 2025 (13 topics).

All topics of the dayDay quizSeptember 2025

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