Sebi Mandates Near-Zero Data Loss Standards for Market Institutions
In a recent directive, the Securities and Exchange Board of India (Sebi) has emphasized the necessity for stock exchanges and other market infrastructure institutions (MIIs) to achieve a Recovery Point Objective (RPO) that approaches zero. This requirement aims to minimize data loss during technical failures or disruptions.
Understanding Recovery Point Objective
The term “Recovery Point Objective” refers to the maximum duration an organization can tolerate data loss due to unforeseen incidents. An RPO close to zero indicates that MIIs should strive for nearly complete availability of their data and applications, ensuring seamless operations even in adverse situations.
Documentation and Collaboration Requirements
Sebi has mandated that MIIs establish a comprehensive methodology for data reconciliation when transitioning back from a Disaster Recovery Site (DRS) or any relevant location. Furthermore, these institutions are required to work together in formulating a standardized definition of ‘near-zero data loss.’ This definition must be submitted after receiving approval from their respective Standing Committee on Technology.
Infrastructure Enhancements: Near Sites Included
To bolster resilience against potential disruptions, Sebi insists that all stock exchanges, clearing corporations, and depositories maintain not only a DRS but also implement a Near Site (NS). The inclusion of an NS is crucial in achieving the goal of near-zero data loss during operational recovery processes.
Expertise at Disaster Recovery Sites
In its guidelines, Sebi highlighted the importance of having personnel at DRSs who possess expertise equivalent to those working at Primary Data Centers (PDCs). It is essential that DRSs operate autonomously with adequately trained staff without depending on PDC personnel. This independence ensures uninterrupted service delivery even when primary systems face challenges.
Architectural Integrity: Ensuring High Availability
The structural design encompassing PDCs, DRSs, and NSs must prioritize high availability and fault tolerance while eliminating single points of failure. Additionally, maintaining near-zero data loss alongside ensuring robust data integrity is paramount in safeguarding market operations against potential risks.
By implementing these stringent measures outlined by Sebi, MIIs can significantly enhance their operational resilience while fostering greater confidence among investors regarding the security and reliability of financial markets.
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