Latest News | Sebi Eases Software Testing Requirement

New Delhi, Nov 24 (PTI) Markets regulator Sebi on Tuesday relaxed the requirement of mandatory mock trading sessions to facilitate testing of new software or existing software that has undergone any change of functionality in certain conditions.

The decision comes after the regulator received various representations from stakeholders seeking relaxation in software testing norms.

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In a circular, Sebi said that requirement of mandatory mock trading sessions to facilitate testing of new software or existing software that has undergone any change of functionality will be optional if a stock exchange provides suitable simulated test environment to test such software and ensures the test environment will be made available to all the members. 

Also, stock exchanges need to ensure that the test environment will be made available for at least two hours after market hours and at least on two trading days in a week. 

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For the purpose of testing, stock exchange will make available data from at least one trading day in all segments and the same will not be older than one month from the day of the testing environment, Sebi said.

"All trading members (excluding those who use only exchange provided front end and/or ASP services) having approved algorithms available with the member, irrespective of the algorithm having undergone change or not, shall participate in the simulated environment at least on one trading day during each calendar month at all the exchanges where they are members," Sebi said.

This will be audited and reported in the system auditors report, it added.

Besides, exchanges will have to provide a daily log, including algos used, of members participation in simulated environment to all participating members.

Further, the exchanges will have to provide summary report of such activity to Sebi in the monthly development report.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)