Sebi proposes extending IT security rules to subsidiaries of Market Infrastructure Institutions
The Indian regulator plans to apply cyber security frameworks from parents like stock exchanges to their subsidiary firms by October 2.
The Securities and Exchange Board of India has proposed extending its IT and cybersecurity framework to cover the subsidiaries of Market Infrastructure Institutions, including stock exchanges, depositories, and clearing corporations. This initiative aims to strengthen oversight over entities handling critical market data and technology infrastructure. The regulator issued a consultation paper on September 11 and seeks public comments by October 2. Currently, the rules apply strictly to parent MIIs, but a gap exists regarding their subsidiaries that may share technology resources or perform activities for the parent firm. Sebi stated that subsidiaries undertaking activities within the MII's domain must comply with applicable requirements to maintain operational continuity and prevent unauthorized access. The proposal addresses rising threats from advanced cyberattacks exploiting security gaps in digital systems.
