SEBI Introduces Stock Exchange Interoperability to Safeguard Market Stability
Image Source: Jimmy vikas
Starting April 1, 2025, the Securities and Exchange Board of India (SEBI) will implement a landmark policy allowing stock exchange interoperability in India. This means if one stock exchange—like the Bombay Stock Exchange (BSE)—suffers a technical glitch or outage, trading can automatically continue on another platform, such as the National Stock Exchange (NSE), and vice-versa.
The initiative is led by SEBI, India’s capital markets regulator. It aims to boost the strength and reliability of the country’s trading infrastructure. The decision comes after growing concerns over trading halts caused by tech failures at individual exchanges in recent years.
When will this start?
The interoperability system will go live on April 1, 2025. From this date, traders and market participants will have the ability to shift trading activities between BSE and NSE in real-time if one platform goes down.
Where will this apply?
This policy covers all major market segments: cash markets (where stocks are bought and sold), derivatives (such as futures and options), currency derivatives, and interest rate derivatives. Initially, interoperability will function between India’s two largest stock exchanges—NSE and BSE—but could expand later.
Why does this matter?
In recent years, India’s stock market has experienced disruptions due to server outages or unexpected downtimes. These moments created uncertainty for investors, sometimes leading to financial losses and panic. SEBI’s new system is a proactive step to prevent such situations. It ensures that market operations don’t come to a standstill and helps maintain investor trust, especially in volatile or high-volume trading hours.
How will it work?
In the event of a technical issue at one exchange, brokers and traders will automatically be allowed to reroute their transactions through the other operational exchange. The technical and operational systems are being aligned to ensure a seamless transition without requiring fresh approvals or separate setups.
Team Profile
- News Writer
- Saksham Mehta is a journalism graduate from Delhi University and a PGD student in Digital Media at IIMC New Delhi. Passionate about storytelling and news, he is a published author with Zee business. With a keen interest in analytical reporting, digital media, and financial journalism. Saksham is dedicated to making an impact in the evolving world of news and storytelling.
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