MANU/SSMD/0021/2015

Ministry : Securities and Exchange Board of India

Department/Board : Commodity Derivatives Market Regulation Department

Circular No. : CIR/CDMRD/DEICE/01/2015

Date : 16.11.2015

Notification/ Circulars Referred : Circular no. CIR/MRD/DMS/13/2011 dated November 29, 2011 MANU/SSMD/0065/2011;Circular no. CIR/MRD/DMS/12/2012 dated April 13,2012 MANU/SSMD/0028/2012;Circular no. CIR/MRD/DMS/17/2012 dated June 22,2012 MANU/SSMD/0043/2012

Citing Reference:
Circular no. CIR/MRD/DMS/13/2011 dated November 29, 2011 MANU/SSMD/0065/2011  Referred

Circular no. CIR/MRD/DMS/12/2012 dated April 13,2012 MANU/SSMD/0028/2012  Referred

Circular no. CIR/MRD/DMS/17/2012 dated June 22,2012 MANU/SSMD/0043/2012  Referred

To

The Managing Directors / Chief Executive Officers
All National Commodity Derivatives Exchanges

Sir/Madam,

Annual System Audit, Business Continuity Plan and Disaster Recovery

1. Pursuant to Section 131 of the Finance Act, 2015 and Central Government notification F.No. 1/9/SM/2015 dated August 28, 2015, all recognized associations under the Forward Contracts (Regulation) Act, 1952 are deemed to be recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956 with effect from September 28, 2015. This circular applies to National Commodity Derivatives Exchanges (Exchanges) as defined in the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2015.

2. While technological developments and innovations bring efficiency to the markets, they may also pose certain risks to the stability and integrity of the markets, if not identified and managed effectively. Further, any events of disaster will disrupt trading systems adversely, thereby impacting the market integrity and the confidence of investors. Exchanges should therefore have robust Business Continuity Plan (BCP) and Disaster Recovery (DR) to ensure continuity of operations.

3. In view of above, the guidelines relating to Annual........