New Delhi: The Securities and Exchange Board of India (SEBI) is gearing up to introduce a comprehensive Cybersecurity and Resilience Framework for the capital markets. The aim is to encourage market intermediaries to adopt this framework to safeguard against cyber threats.
Kamlesh Varshney, a Whole-Time Member of SEBI, stated that SEBI has developed the cybersecurity framework, which has been submitted to the Industry Standards Forum for Brokers for feedback. Upon receiving industry input by the end of the month, SEBI will proceed with the framework’s implementation. Varshney announced this initiative during the ANMI-organised 13th International Convention 2024 in the capital.
Given the increasing digitisation of financial systems, Varshney’s remarks underscored the critical need for robust cybersecurity measures in equity markets. Recent incidents, such as the reported ransomware attack on Motilal Oswal Financial Services, highlight the vulnerability of financial institutions to cyberattacks.
Additionally, Varshney urged brokers to stay abreast of global technological advancements and integrate innovative technologies into their operations. He emphasised the role of technology in business survival and highlighted SEBI’s utilisation of Artificial Intelligence (AI) for investigative purposes.
Furthermore, Varshney cautioned against broker manipulations and encouraged vigilance within the broking community to identify and report such activities. He stressed the importance of investor trust in the capital markets, citing the significant growth in resource mobilisation through equity markets over the past four years.
As of December 2023, the total number of demat accounts in India reached 14 crores, doubling over the past 2.5 years. Unique demat accounts also doubled in the same period, reaching 9.5 crores by December 31, 2023.
