IND SEBI Disaster Recovery Revisions


On Sep. 12, IND SEBI revised guideline to ensure near zero data loss.


  • IND SEBI amended Guidelines for business continuity plan (BCP) and disaster recovery (DR) of market infrastructure institutions (MIIs), under three master circulars below.
  • Follows IND SEBI Oct. 2023 issued master circular for stock exchanges, see #188261.
  • Also follows IND SEBI Oct. 2023 issued master circular for for depositories, #97698.
  • Follows IND SEBI Aug. 2023 revised master circular regarding derivatives, #110052
  • Overview of Amendments
  • Apart from disaster recovery site (DRS), all stock exchanges, clearing corporations (CC) as well as depositories shall have a near site (NS) to ensure near zero data loss.
  • Manpower deployed at DRS shall have the same expertise as available at primary data center (PDC) in terms of knowledge/awareness of various tech and procedural systems and processes re all operations that DRS can function at short notice, independently.
  • In addition, MIIs shall have sufficiently-trained staff at their DRS so as to have the capability of running live operations from DRS without involving staff of PDC.
  • MIIs shall ensure that the recovery point objective (RPO) - the maximum tolerable period for which data might be lost due to a major incident - shall be near zero.
  • In addition, specified that MIIs shall have a documented methodology for data reconciliation when resuming operations from DRS or any other site as applicable.
  • Solution architecture of PDC and DRS, NS shall ensure high availability, fault tolerance, no single point of failure, near zero data loss, and data and transaction integrity.
  • Synchronous replication/appropriate replication between PDC and NS shall be implemented; it may be implemented between PDC and DRS or between NS and DRS.
  • Action Required
  • MIIs shall develop a standardized definition of near zero data loss and submit to IND SEBI after taking approval from their respective Standing Committee on Technology.
  • MIIs shall make necessary amendments to relevant bye-laws, rules and regs (if any).
  • Effectiveness
  • Circular provision 2.2 is effective on/from Sep. 12, 2024, and the remaining provisions of this circular shall come into effect two months from that date, i.e. Nov. 12, 2024.

Regulators IND SEBI
Entity Types B/D; Depo; Exch
Reference Cir SEBI/HO/MRD/TPD/P/CIR/2024/119, 9/12/2024
Functions BCS; Compliance; HR; Legal; Operations; Reporting; Risk; Technology; Training
Countries India
Category
State
Products Clearing; Securities
Regions AP
Rule Type Final
Rule Date 9/12/2024
Effective Date 11/12/2024
Rule Id 225913
Linked to Rule :188261
Reg. Last Update 9/12/2024
Report Section International

Last substantive update on 09/17/2024