The technical error happened while the early-morning trade period
The National Stock Exchange of India (NSE) stated that a technical error that hampered intra-day business on few of its divisions was not the outcome of a cyber attack. “It is clarified that no such attack was observed leading to the technical glitch,” stated the stock exchange bigger adding that it did not move the trade to the BCP (business continuity plans) website, as the initial evaluation of the error indicated to a software issue.
“BCP mechanism is normally invoked during any disaster, hardware failure, connectivity-related issues. Preliminary assessment indicated a software problem. Secondly, the system was expected to be rectified quickly and shifting BCP site would have taken longer time.”
The stock market manager SEBI had previously announced guidelines for all exchanges and depositories to have a BCP and trouble improvement site in the event of a natural disaster. The technical error happened at the early-morning business period on Monday and hampered trading on the Cash and Future and Option (F&O) divisions. The error was seen after the NSE stock rates were discovered not in tandem with BSE (Bombay Stock Exchange) scrip costs.
The NSE’s first two efforts were unsuccessful to complete restart the market. At last, the third effort developed in the renewal of full-fledged business while the mid-afternoon period at about 12.30 p.m. in the cash and F&O divisions. But, stock brokers connected by IANS stated that when normal trade continued after 12.30 p.m., few small problems in the cash division stayed earlier being fixed at about 1.00 p.m. ALSO READ: 91% of businesses in India feel at cyber attack risk: Study
“It restarted around 12.30 p.m. but some minor display issues on the cash segment remained till 1.00 p.m. The Futures segment operated seamlessly after the restart,” a stock broker said IANS.
Later the event, NSE delivered the issue to its internal Standing Committee on Technology that consist of public interest directors and technology masters to check “the problem” and accept measures to avoid frequency of such errors. “The matter is being examined by the internal technical team and external vendors, to analyse and identify the cause which led to the issue and to suggest solutions to prevent recurrence,” the NSE stated.
After in the day, Sebi directed the NSE to present a “detailed report” on the technical error. “Sebi has directed NSE to submit a detailed report on the matter. SEBI has also asked NSE to have a review of their business continuity plans and to submit a detailed plan as to what measures are going to be taken to avoid such recurrences,” the regulator stated.
“Sebi is also looking at the matter comprehensively and will interact with different stakeholders to explore as to what more needs to be done to avoid such recurrences.”