The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are set to conduct a special live trading session on Saturday, May 18, to test its disaster preparedness.

How It’s Going To Work: The equity market session will be divided into two parts: the first from 9:15 a.m. to 10 a.m. will operate from the primary site, and the second from 11:45 a.m. to 1 p.m. will switch to the disaster recovery site.

The NSE clarified that during this session, all securities, including those with derivative products, will have a maximum price band of 5%. Securities already within a 2% or lower price band will remain in their respective bands. Close-ended mutual funds will also follow the 5% price band.

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For the F&O segment, the initial session will have the same timings as the cash market on the primary site. The second session, which will be conducted at the disaster recovery site, will run from 11:45 a.m. to 12:40 p.m., facilitating trading activities.

For futures contracts, a daily operating range of 5% will be enforced, with no flexing of securities or futures contracts. The price bands for the equity segment and futures contracts set at the start of the day at the primary site will also apply at the disaster recovery site.

Any changes in the price bands of options contracts due to market factors will carry over from the primary site to the disaster recovery site.

This special session aligns with Securities and Exchange Board of India (SEBI) guidelines to ensure readiness for unexpected disasters.

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