MUMBAI - Indian stock exchanges, including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), are scheduled to conduct special trading sessions on Saturday, January 20, 2024. These sessions are part of a disaster recovery (DR) drill mandated by the Securities and Exchange Board of India (SEBI) to ensure the robustness of the financial market's infrastructure.
The exercise will be carried out in two phases, with the first phase running from 9:15 AM to 10:00 AM and the second phase from 11:30 AM to 12:30 PM, both local time (UTC+5:30). During these sessions, there will be an intra-day transition to the DR site, which is designed to test the exchanges' capabilities in the event of a major disruption.
To maintain market stability during the drill, price bands will be implemented with a maximum limit of 5% or the existing limit of 2% for securities that typically have tighter bands. This measure is to prevent excessive volatility during the special trading sessions.
Additionally, January 20 is observed as a settlement holiday, meaning equity purchases made on Friday will not be settled until Monday, January 22. It is also important for traders to note that funds from futures and options trades conducted on Friday cannot be utilized during the special DR sessions. This is to ensure that the testing does not impact the regular settlement cycle and provides a clear environment for the DR mechanisms to be evaluated effectively.
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