The Securities and Exchange Board of India has announced a revised framework to address technical glitches in stock brokers’ electronic trading systems as part of its Ease of Compliance initiative. Following public consultation and stakeholder feedback, SEBI streamlined the applicability of the framework by limiting it to stock brokers with more than 10,000 registered clients, thereby exempting nearly 60% of brokers with smaller operations and lower technology dependence. The revised framework also excludes glitches that occur outside a broker’s trading architecture, do not directly affect trading functionality, or have negligible impact, granting immunity for issues beyond brokers’ control. Reporting requirements have been simplified by extending the reporting timeline, factoring in trading holidays, and shifting to a single Common Reporting Platform. Technology compliance norms have been rationalised based on broker size, and the disincentive structure has been recalibrated considering the nature and frequency of glitches, making compliance more proportionate and cost-effective.
Also Read: SEBI Revamps Technical Glitch Rules to Ease Broker Compliance
Securities and Exchange Board of India
PR No. 04/2026
Ease of Compliance Initiative- Review of Framework to address the ‘technical glitches’ in Stock Brokers’ Electronic Trading Systems’
1. SEBI has undertaken a series of measures to create a conductive regulatory environment aimed at enhancing ease of compliance and in turn, facilitating ease of doing business for the market intermediaries. In furtherance of this objective, SEBI carried out review of the extant technical glitch framework for the stock brokers.
2. Pursuant to public consultation and based on the feedback and views obtained from the stakeholders, the extant technical glitch is modified in line with ease of compliance for the stock brokers:
♦ Streamlining eligibility criteria: The eligibility criteria for the applicability of the technical glitch framework has been streamlined to exclude smaller size stock brokers especially those with small size of the business and lower dependency on the technology. The framework is now applicable to stock brokers having more than 10,000 registered clients. As a result of new eligibility criteria approximately, 60% of stock broker would be moving out of this framework and consequently reduce their overall compliance requirement.
♦ Exemptions from applicability of Technical glitches: The revised framework carved out certain exemptions from the glitches and the compliance requirement thereof. The glitches which are taking place outside the stock brokers’ trading architecture, glitches that don’t directly affect the trading functionality and those which have negligible impact have been exempted from the technical glitch framework. This results into immunity to the stock brokers from the glitches which are out of control of the stock brokers & which do not affect the ability of the stock broker to provide seamless services.
♦ Simplifying the reporting requirement: The revised framework simplifies the reporting requirement by providing the extension of time for reporting of technical glitches (from one hour to two hours), consideration to the trading holiday’s while submitting reports and streamlining the reporting requirement from reporting to all the exchanges to a single reporting platform (i.e. Common Reporting Platform).
♦ Rationalised and cost effective based technology requirements: The revised framework rationalised the technology compliance requirement based on the size of the stock brokers & their technology dependency. Such as rationalisation in Capacity planning and DR drill requirement etc.
♦ Rationalisation in disincentive structure: The financial disincentive structure in the revised framework has been rationalised considering the applicable exemptions, type of glitches (major or minor) and the frequency of the occurrences etc, the same shall be issued by the stock exchange.
Mumbai
January 09, 2026
