SEBI Chairperson Madhabi Puri Buch has said that they were working with the BSE and the National Stock Exchange in developing a system to reduce cyberattack threats. The system will be operational from March. Under the new system, both the exchanges will store their data at each other’s servers to ensure cyberattacks do not affect the market functioning.
According to Buch, if exchange A were to go down and SEBI determined that it was struck by a cyberattack and even the disaster recovery site may not come up on time, the regulator will press the panic button for the data to be uploaded on the systems of exchange B. This way, markets will remain functioning even if any exchange faces a cyberattack.
Buch said, “When the cyberattack happens, and it will happen one day, we all know that. When this system kicks in, we would have prevented something. Nobody will see it as something (a cyberattack) happened. (But see that) it didn’t happen. We worry a lot about cyber security. When this system kicks in, we would have prevented something (like a cyberattack). This has never been done in the world. And we will be the first.”
Buch also suggested that a line had to be drawn between influencers and their impact and SEBI cannot act against the wrongdoings unless there was a contract between an influencer and a person who followed their financial advice. She said the exchanges had already stepped up their warnings against unsolicited stock tips and such advice. Buch said that SEBI was constantly using data for back-testing of proposed regulations as well as existing ones for better policy making.
