The Securities and Exchange Board of India (SEBI) has announced significant new guidelines aimed at establishing interoperability between the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). According to the recent update released on Thursday, both exchanges will function as alternative trading venues for each other, a change that is set to take effect on April 1, 2025. SEBI emphasized the necessity for both exchanges to collaboratively develop a Standard Operating Procedure (SOP) that outlines the actions to be taken during outages, detailing the workflow between the affected exchange and its alternative venue, as well as the specific roles and responsibilities of each party involved.

Furthermore, SEBI has instructed the exchanges to formulate an SOP that addresses any necessary adjustments in the systems utilized by stock brokers and clearing corporations to implement the measures outlined in the circular for the benefit of end investors. This SOP is required to be submitted to SEBI within 60 days from the date of the circular.

Interoperability in the stock market, which was introduced prior to 2019, allows for greater flexibility by enabling trades to be transferred and settled through an alternative clearing corporation in the event of issues with one, thereby ensuring the continuity of market operations.