The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have scheduled a special live trading session on January 20, 2024, i.e. on Saturday, to test their disaster recovery sites as part of the SEBI-mandated Business Continuity Plan.
This session aims to ensure that trading activities continue even if the main trading center in Mumbai is affected by unforeseen events.
On this day, the BSE and NSE will hold two sessions: the first from 9:15 AM to 10:00 AM and the second from 11:30 AM to 12:30 PM. The special session will be shorter in duration, and volatility may be restricted to a 5% operating range for all stocks and derivatives. Securities with a 2% circuit limit will keep that 2% limit.
The special session will take place at the disaster recovery site, with a pre-open session preceding normal trading hours. Notably, any outstanding orders from the first session will be cleared before the start of the second session.
Market experts advise investors to be aware of the variations in trading dynamics during this special live session. Investors will need to place orders quickly, and they will have limited time to analyze trends.
Furthermore, January 20 is a settlement holiday, so any credits in the F&O segment and intraday profits from January 19 will be unavailable for trading during this period. Fund withdrawal requests submitted on Saturday will not be processed.
This special live trading session is consistent with SEBI guidelines requiring market infrastructure intermediaries to switch to their disaster recovery site as part of their business continuity plan.
It is not the first occasion that stock markets operate on weekends. Because D-Day, February 1, fell on a Saturday, the BSE and NSE were open for business earlier in the 2020 Budget. The disaster recovery site has hosted sessions in the past in 2016 and 2017.
Written by Sriram KV
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