SEBI Sets New IT Safety Framework To Monitor Technology Risks In Securities Market

New Delhi, Aug 24: The Securities and Exchange Board of India (SEBI) on Monday introduced an IT Resilience Index (ITRI) framework for market infrastructure institutions (MIIs) to strengthen the resilience and reliability of technology systems in stock exchanges, clearing corporations and depositories.

SEBI introduces resilience framework

The framework will cover oversight of resilience of IT systems, identify emerging weaknesses at an early stage and initiate timely corrective measures.

The regulator said the new framework will measure the robustness of critical IT systems on a 100-point scale across nine parameters.

Availability and security carry the highest weight at 20 points each, followed by integrity, governance, reliability and monitoring, business continuity, and modularity and flexibility, each with 10 points weightage. Scalability and other parameters, including incident handling, carry five points each.

IT systems under scrutiny

“IT systems of Market Infrastructure Institutions (MIIs) form the backbone of smooth and uninterrupted functioning of Securities market and are fundamental to ensuring its orderly, efficient and uninterrupted functioning,” the statement said.

Any disruption, degrading in performance or compromise of these systems may adversely impact critical market operations and pose risks to the trust in the securities market.

The regulator directed MIIs to develop an Early Warning System to detect possible deterioration in any of the parameters of ITRI leading to possible performance issues, slowness etc. in their systems and framework to remedy these.

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Implementation timeline set

As MIIs have already implemented the beta version of the ITRI framework, the regulator directed them to operationalise the ITRI framework, including Early Warning System and Real Time Monitoring of Service Delivery, by February 28, 2027.

MIIs should compute ITRI on a half-yearly basis within a period of 60 days from the end of each half-year and submit the comparative analysis of two consecutive half-years and corrective actions taken to their Standing Committee on Technology (SCOT) and the Governing Board.

ITRI would be computed automatically from IT systems without manual intervention, the statement noted.

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