**Executive Summary**
This press release from the Securities and Exchange Board of India (SEBI) announces a review of the technical glitch framework for stock brokers' electronic trading systems. The review aims to enhance ease of compliance for stock brokers. The revised framework is modified based on public consultation and stakeholder feedback. The announcement is dated January 09, 2026.
**Key Points / Main Content**
* **Eligibility Criteria Streamlining:**
* The revised framework now applies to stock brokers with more than 10,000 registered clients.
* Approximately 60% of stock brokers will no longer be subject to this framework.
* **Exemptions from Technical Glitch Applicability:**
* Glitches outside the broker's trading architecture, those not directly affecting trading functionality, and those with negligible impact are now exempt.
* **Reporting Requirement Simplification:**
* Reporting time for technical glitches is extended from one to two hours.
* Reporting is streamlined to a single platform (Common Reporting Platform).
* Trading holidays are considered when submitting reports.
* **Rationalised Technology Requirements:**
* Technology compliance requirements are now based on the size of the stock broker and their technology dependency (e.g., capacity planning and DR drill).
* **Rationalised Disincentive Structure:**
* The financial disincentive structure considers applicable exemptions, type of glitches (major or minor), and frequency of occurrences.
* Details of this structure will be issued by the stock exchange.
**Impact Analysis**
**Stock Brokers**
* **Impact:** Reduced compliance burden for smaller brokers (those with less than 10,000 clients). Overall reduced compliance requirement.
* **Action Required:** Review the new eligibility criteria, exemptions, and reporting requirements to understand their applicability. Await further details from the stock exchange regarding the revised financial disincentive structure.
Key Entities Referenced
SEBI: Securities and Exchange Board of India; the primary regulator.
Technical Glitch Framework: The framework governing the management and reporting of technical glitches in stock brokers' electronic trading systems, being reviewed and modified in this document.
Stock Brokers: Entities regulated by SEBI who are subject to the technical glitch framework.
PR No.04/2026
Ease of Compliance Initiative- Review of Framework to address the ‘technical
glitches’ in Stock Brokers’ Electronic Trading Systems’
1. SEBI has undertaken a series of measures to create a conductive regulatory
environment aimed at enhancing ease of compliance and in turn, facilitating ease
of doing business for the market intermediaries. In furtherance of this objective,
SEBI carried out review of the extant technical glitch framework for the stock
brokers.
2. Pursuant to public consultation and based on the feedback and views obtained from
the stakeholders, the extant technical glitch is modified in line with ease of
compliance for the stock brokers:
Streamlining eligibility criteria: The eligibility criteria for the applicability of the
technical glitch framework has been streamlined to exclude smaller size stock
brokers especially those with small size of the business and lower dependency
on the technology. The framework is now applicable to stock brokers having
more than 10,000 registered clients. As a result of new eligibility criteria
approximately, 60% of stock broker would be moving out of this framework and
consequently reduce their overall compliance requirement.
Exemptions from applicability of Technical glitches: The revised framework
carved out certain exemptions from the glitches and the compliance
requirement thereof. The glitches which are taking place outside the stock
brokers’ trading architecture, glitches that don’t directly affect the trading
functionality and those which have negligible impact have been exempted from
the technical glitch framework. This results into immunity to the stock brokers
Page 1 of 2from the glitches which are out of control of the stock brokers & which do not
affect the ability of the stock broker to provide seamless services.
Simplifying the reporting requirement: The revised framework simplifies the
reporting requirement by providing the extension of time for reporting of
technical glitches (from one hour to two hours), consideration to the trading
holiday’s while submitting reports and streamlining the reporting requirement
from reporting to all the exchanges to a single reporting platform (i.e. Common
Reporting Platform).
Rationalised and cost effective based technology requirements: The revised
framework rationalised the technology compliance requirement based on the
size of the stock brokers & their technology dependency. Such as
rationalisation in Capacity planning and DR drill requirement etc.
Rationalisation in disincentive structure: The financial disincentive structure in
the revised framework has been rationalised considering the applicable
exemptions, type of glitches (major or minor) and the frequency of the
occurrences etc, the same shall be issued by the stock exchange.
Mumbai
January 09, 2026
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