The interoperability will be applicable from April 1, 2025, for segments including cash, derivatives, currency derivatives, and interest rate derivatives

In response to potential technical glitches or cyber attacks, Sebi mandates NSE and BSE to act as alternative trading venues to ensure business continuity. This plan comes after a notable 2021 incident at NSE,

This is to reduce price risk for investors as announcements can come from companies and alter the share price at the time of an outage at a stock exchange

The SEBI circular, which mandates interoperability of stock exchanges, is aimed at ensuring business continuity in case of an outage or technical glitch.

A move to bolster market resilience, the Securities and Exchange Board of India (SEBI) has mandated that the National Stock Exchange (NSE) and the BSE function as alternative trading venues for each other.

Securities and Exchange Board of India (Sebi) has allowed both the stock exchanges NSE, BSE to act as alternative trading venue at the time of outage on either exchange. Furthermore, this is part of the second phase of Business Continuity Planning (BCP) and Disaster Recovery Site (DRS) for Market Infrastructure Institutions (MIIs).

SEBI said that for identical or correlated products-- single stock derivatives, index derivatives -- participants can hedge their positions on another exchange during an outage.

Following the recent technical glitch at the National Stock Exchange (NSE), which caused the longest-ever trading halt in Indian capital markets, SEBI has stressed on the need to create procedures for interoperability in the Indian stock exchanges.

The Securities and Exchange Board of India (SEBI) has introduced measures to enhance trading continuity during technical outages at stock exchanges. Under the new framework, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will serve as alternative trading venues for each other to minimise disruption and protect investor interests.