MANU/SSMD/0069/2020

Ministry : Securities and Exchange Board of India

Department/Board : Market Regulation Department

Circular No. : SEBI/HO/MRD1/DSAP/CIR/P/2020/234

Date : 24.11.2020

Notification/ Circulars Referred : Circulars CIR/MRD/DP/24/2013 dated August 19, 2013 MANU/SSMD/0057/2013;CIR/MRD/DP/06/2014 February 7, 2014 MANU/SSMD/0012/2014

Citing Reference:
Circulars CIR/MRD/DP/24/2013 dated August 19, 2013 MANU/SSMD/0057/2013  Referred

CIR/MRD/DP/06/2014 February 7, 2014 MANU/SSMD/0012/2014  Referred

All Recognised Stock Exchanges

Dear Sir / Madam,

Testing of software used in or related to Trading and Risk Management

1. SEBI vide Circulars CIR/MRD/DP/24/2013 dated August 19, 2013 and CIR/MRD/DP/06/2014 February 7, 2014 came out with guidelines on 'Testing of software used in or related to Trading and Risk management'. Subsequent to the above, SEBI has received various suggestions/ representation from stakeholders seeking relaxation from the requirement of software testing, prescribed in the aforementioned circulars.

2. After due examination and consultation with stakeholders, it has been decided that requirement of mandatory mock trading sessions to facilitate testing of new software or existing software that has undergone any change of functionality shall be optional if a Stock Exchange provides suitable simulated test environment to test new software or existing software that has undergone any change of functionality and ensures the following:

i) The test environment shall be made available to all the members.

ii) The test environment shall be made available for at least two hours after market hours and at least on two trading days in a week.

iii) For the purpose of testing, Sto........