SEBI issues Cyber Security & Cyber Resilience framework for Stock Brokers / Depository Participants

Dec 04, 2018 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on December 03, 2018 has issued Cyber Security & Cyber Resilience framework for Stock Brokers / Depository Participants.

Rapid technological developments in securities market have highlighted the need for maintaining robust cyber security and cyber resilience framework to protect the integrity of data and guard against breaches of privacy. 

Since stock brokers and depository participants perform significant functions in providing services to holders of securities, it is desirable that these entities have robust cyber security and cyber resilience framework in order to provide essential facilities and perform systemically critical functions relating to securities market. 

Accordingly, after discussions with Exchanges, Depositories and Stock Brokers’ and Depository Participants’ associations, a framework on cyber security and cyber resilience has been designed by the SEBI (Annexure 1 in the Circular). The framework would be required to be complied by all Stock Brokers and Depository Participants registered with SEBI. 

Cyber security framework includes measures, tools and processes that are intended to prevent cyber-attacks and improve cyber resilience. Cyber Resilience is an organization’s ability to prepare and respond to a cyber-attack and to continue operation during, and recover from, a cyber-attack.

The guidelines annexed with the circular shall be effective from April 1, 2019.

[Circular SEBI/HO/MIRSD/CIR/PB/2018/147]

URL: https://www.sebi.gov.in/legal/circulars/dec-2018/cyber-security-and-cyber-resilience-framework-for-stock-brokers-depository-participants_41215.html


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