Cause of NSDL glitch being analysed, says Sebi chairman

MUMBAI: A root cause analysis of NSDL’s recent tech glitch that mainly delayed inter-depository settlements for several days this month, is being carried out, Tuhin Kanta Pandey, chairman, Sebi said on Thursday. Once the report is ready it will be put up with Sebi’s technical advisory committee and corrective steps will be taken, he said.

“Sebi was completely monitoring (the issue) all through,” the Sebi chief said. “Whenever such glitches occur, a detailed analysis is done after the root cause analysis. Whatever necessary action needs to be taken in the short, medium and long term is taken, including whether vendors must be asked to do something more or whether something has to be redone. Sometimes there are legacy software systems where some glitches may come because of the growing nature of the market,” he said.

The top markets regulator was speaking to the media after delivering the inaugural address at NISM-Sebi annual International Research Conference. The Sebi chief said that as markets grow in size, they also grow in complexity. “Technology has become the core architecture of modern securities markets.

“Trading, clearing, settlement, surveillance—all are now deeply digital. Sebi’s approach has been to encourage innovation, while remaining vigilant about market integrity and investor protection.”