The Securities and Exchange Board of India (SEBI) is planning to come out with a cybersecurity framework for stock brokers to help in reducing the impact of potential risks by cyber fraud, data leaks and hacking of trading accounts.
In June, SEBI asked stock brokers to report all cyberattacks, threats and breaches within six hours of detecting such incidents. They have to report such incidents within the specified time to the exchanges, depositories and the regulator.
Association of National Exchanges Members of India (ANMI) President Kamlesh Shah said that the framework is aimed at protecting stock brokers as well as their clients, and would include measures, tools and processes that are intended to prevent cyber-attacks and improve cyber resilience.
He said, “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. 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.”