iSPOT – New Portal for Reporting Technical Glitches

The Securities and Exchange Board of India (SEBI) has taken a significant step towards streamlining the reporting and management of technical glitches in the securities market. On January 28, 2025, SEBI issued a circular announcing the launch of iSPOT (Integrated SEBI Portal for Technical Glitches). This web-based platform aims to enhance efficiency, transparency, and compliance in handling technical failures across Market Infrastructure Institutions (MIIs), which include stock exchanges, clearing corporations, and depositories.

Background and Need for iSPOT

Technical glitches can disrupt market operations, impact investor confidence, and pose systemic risks. Currently, MIIs are required to report such incidents and submit Root Cause Analysis (RCA) reports via a dedicated email ID. However, this process lacks automation, making it difficult to track submissions and ensure compliance. The launch of iSPOT addresses these challenges by creating a centralized repository for reporting technical issues, thereby improving data quality, monitoring, and regulatory oversight.

Key Features of iSPOT

Centralized Reporting System:

MIIs will submit preliminary and final RCA reports through iSPOT instead of using email, ensuring standardized documentation and traceability.

Automated Compliance Monitoring:

The system will generate automated alerts, reminding MIIs to submit RCA reports within SEBI’s prescribed timelines after an initial report is filed.

Integration with SEBI Intermediary (SI) Portal:

MIIs can access iSPOT using their existing SI Portal login credentials, eliminating the need for separate registrations.

Improved Data Accuracy and Traceability:

The platform will maintain a historical database of technical glitches, allowing SEBI and MIIs to analyze trends, identify recurring issues, and implement preventive measures.

Implementation Timeline

The provisions of this circular will come into effect on February 3, 2025.

MIIs are required to update their systems, modify relevant bye-laws, rules, and regulations, and ensure readiness for seamless adoption of iSPOT.

Implications for the Securities Market

The introduction of iSPOT marks a significant advancement in regulatory technology. The portal enhances accountability, efficiency, and real-time compliance monitoring for technical disruptions. By providing a transparent and structured framework for reporting glitches, SEBI aims to strengthen market stability and investor confidence.

Conclusion

With iSPOT, SEBI has reinforced its commitment to safeguarding the securities market from operational disruptions. MIIs must proactively adapt to this digital transformation, ensuring seamless compliance and improved oversight of technical glitches. The platform is a step forward in modernizing India’s financial market infrastructure and promoting investor trust.

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