The Securities and Exchange Board of India (SEBI) on June 22, 2026, issued consultation Paper on Draft Circular for Trading Software & Technology at Stock Exchanges and Draft Circular on Common IT related provisions for MIIs.
This consultation paper is issued by Securities and Exchange Board of India (SEBI) to promote Ease of Doing Business (EODB) for Market Infrastructure Institutions (MIIs), including stock exchanges, clearing corporations, and depositories, by simplifying compliance requirements and reducing regulatory burden.
The initiative is aligned with the Union Budget 2023–24 announcement, which emphasized simplification and cost reduction in regulatory compliance through stakeholder consultation. Accordingly, SEBI released multiple consultation papers between October 2025 and May 2026 covering administration, trading, and derivatives, and adopted a structured review approach involving chapter-wise, entity-wise, and consolidation of existing master circulars.
This paper proposes key reforms such as:
Consolidation of circulars on Trading Software and Technology for exchanges
Unified IT guidelines for MIIs, covering system audit, cybersecurity, business continuity (BCP/DR), and capacity planning
Removal of redundant and overlapping provisions across existing circulars
The objective is to create streamlined, harmonized, and technology-focused regulations, replacing multiple existing provisions (up to February 28, 2026) with a single consolidated framework, thereby enhancing operational efficiency and reducing duplication for MIIs.
