Annual System Audit, Business Continuity Plan(BCP) and Disaster Recovery (DR)
Summary
This circular mandates National Commodity Derivatives Exchanges to conduct annual system audits and maintain robust Business Continuity Plans (BCP) and Disaster Recovery (DR) systems. It establishes specific deadlines for implementing these measures, including completing the first audit by June 30, 2016, and setting up disaster recovery sites by September 30, 2016. The directive is issued under Section 11(1) of the SEBI Act, 1992, to ensure market stability and investor confidence.
Text
This circular applies to National Commodity Derivatives Exchanges (Exchanges) as defined in the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2015.
The exchanges shall conduct annual system audit as per the prescribed audit framework which includes, audit process, auditor selection norms, Terms of Reference (TOR) and audit report guidelines in accordance with SEBI circular no. CIR/MRD/DMS/13/2011dated November 29, 2011.
First Annual System Audit of Exchanges shall be conducted on or before June 30, 2016 for the year 2015-16 as per the provisions of the above mentioned circular. The Systems Audit Report and compliance status should be placed before the governing board of the exchange and communicated to SEBI along with their comments.
The exchanges shall have BCP& DR policy in place and implement the broad guidelines regarding the setting up of Disaster Recovery Site (DRS) and Near Site (NS), Configuration of DRS/NS with Primary Data Centre (PDC), DR drills / Testing, BCP DR policy document as per the provisions of SEBI circular no. CIR/MRD/DMS/12/2012 dated April 13,2012 read with circular no. CIR/MRD/DMS/17/2012 dated June 22,2012.
The exchanges having DRS / NS shall align their entire set up in accordance with the provisions as mentioned in the circulars at Point B(I) on or before April 01, 2016
The exchanges which do not have DRS / NS presently shall set up DRS/NS on or before September 30, 2016 in accordance with the provisions as mentioned in the circulars at Point B(I).
The exchanges shall submit their BCP – DR policy along with detailed plan of action for implementation to SEBI on or before April 01, 2016.
The national commodity derivatives exchanges are advised to:- Make necessary amendments to relevant bye-laws for the implementation of this circular; Communicate SEBI, the status of implementation of the provisions of this circular
All the provisions of this circular shall be implemented by national commodity derivatives exchanges, unless otherwise approved by SEBI.
The circular is issued in exercise of the powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Annual System Audit, Business Continuity Plan(BCP) and Disaster Recovery (DR). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.