The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are set to conduct a special live trading session on May 18, 2024. Let’s delve into the details of this special trading session.
What’s Happening?
The NSE and BSE are conducting a special live session on May 18, 2024, to test its readiness to handle unexpected events. This is the second such practice to be conducted in 2024, preceding similar initiatives by both NSE and BSE. Earlier, NSE and BSE conducted similar trading sessions on March 2.
During this exercise, they will switch trading from their primary site to their disaster recovery site for one day. This will be a mock drill to ensure that everything works smoothly in the event of a disaster. This reassures investors that they can trade easily in the market under any circumstances.
Why the Special Session?
This special session is being organised to test the preparedness of these exchanges in the event of a disaster. Until now, trading could have been completely halted in the event of a disaster. During this test, the exchanges will assess whether they can continue trading even during a disaster.
This rehearsal is being conducted in accordance with SEBI guidelines, with the aim of strengthening the Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) for stock exchanges and depositories.
Timing of the Rehearsal Session
This special trading session will be divided into two sessions:
First session: It will start at 9:15 am and end at 10:00 am. During this period, trading will usually take place on the primary site.
Second session: The second session will start at 11:30 am and end at 12:30 pm. During this session, a switch-over to the disaster recovery site will be practiced. The closing session will then run from 12:40 pm to 12:50 pm.
Who will Participate in the Special Session?
This special session is not limited to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE)! In fact, other important institutions guided by the Securities and Exchange Board of India (SEBI) will also participate in this exercise.
These include:
- Indian Clearing Corporation Limited (ICCL)
- NSE Clearing Limited (NCL)
- Central Depository Services (India) Limited (CDSL)
- National Securities Depository Limited (NSDL)
This comprehensive rehearsal ensures that the entire market ecosystem is prepared for any unexpected events.
What does this Mean for Investors?
Investors participating in this special trading session should keep a few things in mind:
- Only equity and equity derivatives segments will be traded in this session.
- There will be a maximum 5% price band for all securities.
- The same limit will apply to stocks already within a 2% or lower price band.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
