The Securities and Exchange Board of India (SEBI) is planning to come out with a cybersecurity framework for stock brokers that will help in reducing the impact of potential risks by cyber fraud, data leaks and hacking of trading accounts, a top official said on Wednesday.
The framework, aimed at protecting stock brokers as well as their clients, would include measures, tools and processes that are intended to prevent cyber-attacks and improve cyber resilience, Association of National Exchanges Members of India (ANMI) President Kamlesh Shah said.
The move is part of the capital markets regulator’s investors safeguard mechanism.
SEBI has set-up a panel that consists of representatives from the regulator, stock exchanges and ANMI, a grouping of stock brokers, for framing the guidelines.
The rapid technological developments in the securities market have highlighted the need for having a robust cybersecurity and cyber resilience framework for stock brokers to protect the integrity of data and guard against breaches of privacy.
"Stock brokers possess a lot of critical data of investors and it’s their responsibility to protect such data from possible cyber fraud and hacking of trading accounts so that investors do face any losses due to any cyber incident,” Shah said.
According to him, the committee may present a draft guidelines to Sebi by the end of December but it will take at least a year to implement the final rules.
"The committee is working on a solution that will be affordable to small brokers too, otherwise the whole purpose of the framework will be defeated,” he added.
In June, Sebi asked stock brokers to report all cyber attacks, threats and breaches experienced by them within six hours of detecting such incidents. They have to report such incidents within the specified time to the exchanges, depositories and the regulator.
Cyber resilience is an organisation’s ability to prepare and respond to such attacks and to continue operations as well as recover from cyberattacks.
(Edited by : Anushka Sharma)
Capital markets regulator SEBI has planned to come out with cyber security framework for stock brokers aimed at protecting them and their clients. The framework will help in reducing the impact of potential risks by cyber fraud, data leaks and hacking of trading accounts.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Phase five Lok Sabha polls: Rae Bareli, Amethi among 14 UP seats going to polls on Monday
May 19, 2024 1:03 PM
AAP protest walk: Arvind Kejriwal challenges BJP to arrest entire party, Delhi Police imposes Section 144
May 19, 2024 12:26 PM
Terror attacks in Kashmir raise concerns ahead of May 20 and May 25 election
May 19, 2024 12:15 PM