Organizational Resilience and Documentation

QRTAs must have a robust Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) in place to ensure uninterrupted operations and maintain the integrity of data and transactions.

Expertise and Staffing at DRS/Near Site (NS)

The manpower deployed at the DRS/NS should possess the same level of expertise as the Primary Data Center (PDC) in terms of knowledge and awareness of various technological and procedural systems and processes. This ensures that the DRS/NS can function independently at short notice. QRTAs should have a sufficient number of trained staff at their DRS to run live operations without involving the PDC staff.

Incident and Response Team (IRT) / Crisis Management Team (CMT)

All QRTAs must establish an Incident and Response Team or Crisis Management Team, chaired by the Managing Director (MD) or the Chief Technology Officer (CTO) in the absence of the MD. The IRT/CMT is responsible for declaring a disaster, invoking the BCP, and shifting operations from the PDC to the DRS when necessary. The roles, responsibilities, and actions to be performed by employees, IRT/CMT, and support/outsourced staff during a disaster event should be clearly defined and documented in the QRTA’s BCP-DR Policy Document.

Technology Committee Review

The Technology Committee of QRTAs should review the implementation of the BCP-DR policy, approved by the QRTA’s board, on a quarterly basis.

Configuration of Disaster Recovery Sites and Near Sites with Primary Data Centers

Disaster recovery systems and near sites are essential for ensuring zero data loss and data and transaction integrity in the event of a disaster or disruption of critical systems. As such, all Qualified Registrar and Share Transfer Agents (QRTAs) catering to Asset Management Companies (AMCs) must have a disaster recovery site (DRS) and a near site (NS). This article discusses the guidelines for configuring DRS and NS with primary data centers to ensure high availability, fault tolerance, and no single point of failure.

1. DRS and NS Requirements
   To ensure zero data loss, all QRTAs catering to AMCs must have both DRS and NS. Ideally, DRS should be set up in different seismic zones, with a minimum distance of 500 kilometers between PDC and DRS to prevent both from being affected by the same disaster.
2. Correspondence between Hardware, System Software, Application Environment, Network, and Security Devices
   To ensure one-to-one correspondence between DRS and PDC, their hardware, system software, application environment, network, and security devices should also correspond.
3. Configuration Changes without Regulatory Entities
   QRTAs should develop systems that do not require configuration changes at the end of AMCs or other regulatory entities for switchover from PDC to DRS.
4. Disaster Recovery Time and Critical Systems
   In the event of disruption of one or more critical systems (including acceptance and processing of transactions, connectivity with AMCs, NAV calculation-related processes) for QRTAs catering to AMCs, the QRTA should declare that incident as a disaster within 30 minutes and restore operations, including from DRS within 45 minutes. The maximum time taken to restore critical systems from DRS after declaration of a disaster should not exceed 45 minutes, to be implemented within 90 days.
5. Recovery Point Objective
   To maintain data loss tolerance to a maximum of 15 minutes due to a major incident, the QRTAs should ensure that their recovery point objective (RPO) is equal to or less than 15 minutes
6. Solution Architecture Requirements
   The primary data center (PDC) and near site (NS) should ensure high availability, fault tolerance, no single point of failure, data and transaction integrity, and zero data loss following a disaster. Furthermore, the solution architecture of PDC and DRS should ensure high availability, fault tolerance, and no single point of failure, along with data and transaction integrity.
7. Immediate Reflection of Updates
   QRTAs should ensure that any updates made at PDC are reflected immediately at DRS/NS (before end of day) without compromising any performance metrics.
8. Replication Architecture Considerations
   Replication architecture, bandwidth, and load consideration between the DRS/NS and PDC should be within stipulated RTO and ensure high availability, right sizing, and no single point of failure. Replication between PDC and NS should be synchronous to ensure zero data loss while the one between PDC and DRS and between NS and DRS may be asynchronous.
9. Availability of Adequate Resources
   Adequate resources (with appropriate training and experience) should be available at all times to handle operations at PDC, NS, or DRS, as the requirements arise regularly and during disasters.

Benefits of Complying with Configurations of DRS/NS with PDC

By complying with these configurations, QRTAs will enjoy many benefits, including zero data loss, high availability, fault tolerance, no single point of failure, data and transaction integrity, and faster disaster recovery time. Additionally, the guidelines ensure zero data loss tolerance to a maximum of 15 minutes due to a major incident.

Drawbacks of Not Complying with Configurations of DRS/NS with PDC

Not complying with these guidelines would leave QRTAs vulnerable to data loss, system disruption, and higher disaster recovery times. Such incidents could lead to significant financial losses, reputational damage, and legal liability.

Impact on Business with this Policy

Complying with these guidelines would enhance the business continuity plan for QRTAs catering to AMCs, protecting their operations in the event of a disaster and improve the confidence of the investors. The policy ensures that critical systems are restored within 45 minutes, which would keep the business back on track promptly, minimizing the financial impact of disruptions.

Importance of Conducting DR Drills for QRTAs

In order to ensure the preparedness and awareness level among employees and outsourced staff, vendors, etc., as per the BCP (Business Continuity Planning) policy, QRTAs (Qualified Registered Transfer Agents) should conduct periodic training programs. Additionally, conducting DR (Disaster Recovery) drills on a quarterly basis is crucial. This article explores the benefits and drawbacks of DR drills, their impact on business, as well as the necessary steps to make them SEO friendly.

Benefits of DR Drills

1. Enhanced Preparedness: DR drills help improve the preparedness of QRTAs by simulating real-life scenarios, such as trading days, with minimal notice to DRS (Disaster Recovery Site) staff involved.
2. Identification of Weaknesses: These drills allow organizations to identify any weaknesses in their operations and address them effectively, thus enhancing overall efficiency and resilience.
3. Documentation of Results: Results and observations from DR drills should be documented and presented before the Governing Board of QRTAs. This allows for a thorough review of the organization’s performance and facilitates improvement.
4. Compliance with Regulations: Conducting DR drills is a regulatory requirement, ensuring that QRTAs comply with industry standards and guidelines set by SEBI (Securities and Exchange Board of India).

Drawbacks of DR Drills

1. Disruption of Operations: During DR drills, staff based at the Primary Data Center (PDC) should not be involved in supporting operations. This may temporarily disrupt normal business activities.
2. Time and Resource Intensive: DR drills require significant time and resources to plan, execute, and document. This can be challenging, especially for organizations with limited budgets and staff.

Impact on Business

Implementing a robust DR drill policy can have several positive impacts on business operations:

1. Enhanced Customer Trust: By demonstrating the ability to seamlessly shift operations from the PDC to the DRS, QRTAs instill confidence in their customers, assuring them of uninterrupted services.
2. Improved Business Continuity: DR drills enable QRTAs to meet Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO), minimizing downtime and ensuring continuity of critical operations. This translates into increased reliability for clients.
3. Regulatory Compliance: Conducting regular DR drills ensures adherence to regulatory requirements set by SEBI, thereby avoiding penalties and reputational risks.

Conducting regular DR drills is essential for QRTAs to enhance their preparedness, identify weaknesses, and comply with regulatory requirements. Despite potential drawbacks, the benefits of DR drills, such as improved business continuity and customer trust, outweigh the challenges. By implementing a diligent DR drill policy, QRTAs can ensure the smooth operation of their critical processes during unforeseen events, ultimately safeguarding their reputation and maintaining the trust of their clients.

Exploring Consumers’ Response to Text-Based Chatbots in E-Commerce: The Moderating Role of Task Complexity and Chatbot Disclosure

Text-based chatbots powered by artificial intelligence (AI) have revolutionized the business potential in e-commerce. This study aims to investigate consumers’ trust and response to text-based chatbots, considering the moderating effects of task complexity and chatbot disclosure.

Methodology

This research was conducted through a survey method, which generated 299 usable responses. The hypotheses were tested using ordinary least squares regression analysis.

Findings

The findings of this study reveal several key insights:

Empathy and Friendliness Impact Trust

Consumers’ perception of the empathy and friendliness of the chatbot positively influences their trust in it.

Task Complexity Moderates the Relationship Between Friendliness and Trust

The relationship between friendliness and trust is negatively moderated by task complexity. This means that as task complexity increases, the positive impact of friendliness on trust decreases.

Chatbot Disclosure Moderates the Relationship Between Empathy and Trust

The disclosure of the chatbot’s identity negatively moderates the relationship between empathy and trust. However, it positively moderates the relationship between friendliness and trust.

Trust Increases Reliance and Decreases Resistance

Consumers’ trust in the chatbot leads to greater reliance on the chatbot and decreased resistance to it in future interactions.

Research Limitations and Implications

By adopting the stimulus-organism-response framework, this study provides important insights into consumers’ perception and response to text-based chatbots. The findings suggest recommendations to enhance consumers’ positive responses to chatbots. It is worth noting that previous studies have focused on the effects of chatbot attributes without considering the boundary conditions. This research fills that gap by providing a deeper understanding of consumers’ responses to chatbots.

Related Studies

Should a Chatbot Disclose Itself? Implications for an Online Conversational Retailer

This study by Roberta De Cicco and Susana Costa e Silva explores consumers’ perceptions when a chatbot discloses its identity before an interaction. The findings suggest that explicit disclosure leads to less perceived social presence, trust, and positive attitude toward the online retailer.

Recasting Service Quality for AI-Based Service

Nurhafihz Noor investigates how the unique nature of AI service agents, such as chatbots and virtual assistants, shapes consumers’ service quality expectations. The study provides fresh insights and a conceptual framework for understanding AISA service quality.

Benefits:

• Improved understanding of consumers’ responses to text-based chatbots
• Enhancements in chatbot design and communication protocols
• Increased consumer trust and reliance on chatbots in e-commerce contexts
• Potential for improved customer satisfaction and brand loyalty

Drawbacks:

• Potential challenges in effectively implementing and managing chatbot disclosure
• Complexities in handling task complexity and managing consumer expectations
• Potential privacy concerns related to chatbot interactions and data handling

Impact on Business:

The findings of this research have significant implications for businesses using text-based chatbots in e-commerce. By understanding consumers’ responses and factors affecting trust, businesses can enhance their chatbot strategies to improve customer satisfaction and loyalty. This can lead to increased conversion rates, improved customer support, and streamlined interactions. However, businesses should also consider the challenges and potential drawbacks associated with chatbot disclosure and managing task complexity.

Conclusions

By implementing a comprehensive BCP-DR policy document, QRTAs can effectively handle disasters, communicate efficiently during crisis situations, and ensure the health and performance of their critical systems. The guidelines provided in this circular aim to enhance resilience and preparedness in the financial markets. It is crucial for QRTAs to comply with these policies to protect the interests of investors and promote the development and regulation of the securities market.