The market regulator has launched a portal for market infrastructure institutions (MIIs), such as stock exchanges and clearing corporations, to report technical glitches, according to a recent circular issued by the Securities and Exchange Board of India (Sebi). The portal aims to improve the data quality and traceability of submissions, among other things.
"In order to streamline the reporting process of technical glitches across MIIs and creation of centralized repository of technical glitches, SEBI has developed a web-based portal, i.e. Integrated SEBI Portal for Technical Glitches (iSPOT), for submission of preliminary and final RCA reports of technical glitches by the MIIs," says Sebi in a circular issued on January 28.
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Sebi, a regulator of the securities market, is taking proactive steps to streamline processes for safeguarding investors' interests and smoothing the functioning of stock exchanges, clearing corporations, and depositories. The Sebi's latest announcement about setting up a web-based portal for technical glitches is a new step in that direction.
With the total switch over to sales, purchases, reporting, and settlement of transactions through the online electronic mode, some technical glitches in operations are bound to arise. The likelihood of such technical glitches is expected to rise with the growing volume of transactions and the widening of the market with new entrants as investors.
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The proposed portal for web-based reporting of technical glitches instead of individual reporting through emails will ensure speedier instant reporting and recording of such errors.
With a faster and more transparent process to resolve glitches. Investors will benefit because they will have increased confidence in the way the exchanges function. The automated system will mean quicker responses to problems and result in the protection of investor interests.
