MCX incident not ideal, further action will be on basis of final analysis: SEBI chief Tuhin Kanta Pandey

The recent MCX incidents were not ideal and analysis is currently taking place he said. Speaking at the sidelines of the Morningstar Investment Conference, Pandey said, “There was an issue during the June–July period as well, and now another one has occurred. This is not right that such problems are happening again and again. But we can comment further only after a complete and proper analysis."

Pandey explained that MIIs have an established standard operating procedure (SOP) as per SEBI regulations. SOP outlines how incidents are to be handled, reported, including the required root cause analysis and relevant tagging. “The entire process is followed as per this SOP,” he said.

On the root cause analysis (RCA), he said that the report is expected to be submitted within the fixed time as per SOP. “The RCA process itself has multiple stages, including an initial report that must be provided within 24 hours. We will adhere fully to the SOP, which clearly defines the steps to be followed,” he said.

On October 28, a company filing had notified about the technical glitch at commodity exchange MCX that disrupted trading for more than four hours, and led to the shifting of operations from DR site after a long delay. The trading finally resumed at 1:25pm on MCX. In the filing, MCX said, “Operations were shifted to the Disaster Recovery (DR) site, and trading started at 1.25pm. All trading systems are now functioning normally.” Moneycontrol has reported that SEBI had reached out to the commodity derivatives exchange for details on the disruption.