RBI Grade BNABARD ESISEBI
In one lineMore on this exam
Source: ET
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
Context:
Currently, any malfunction in a stockbroker’s electronic trading system is classified as a “technical glitch.” This framework applies to all brokers, regardless of size or client base.
Key Proposed Changes
- Redefinition of Technical Glitch
- Excludes malfunctions after trading hours and issues beyond the control of stockbrokers.
- Applicability Threshold
- Applies only to brokers:
- Providing internet-based trading platforms
- Having more than 10,000 clients as of March 31 of the previous financial year
- Result: 457 small stockbrokers will now be excluded, reducing compliance burden.
- Applies only to brokers:
- Financial Disincentive Adjustments
- Brokers will not face penalties for glitches that do not materially affect client services
- Example: Minor operational issues with negligible impact
- Disclosure and Transparency
- Stock exchanges should rationalise financial disincentives
- Instances of technical glitches should be disclosed on their websites
- Capacity Planning Requirements
- Stockbrokers must ensure adequate infrastructure to handle increased investor load
- Requires monitoring of peak load across trading applications, servers, and networks
