Sebi is all set to chart out a long term cyber security plans for the market due to the malicious software script targeting systems and possible data breaches. The exchange board will be having a discussion with its board members soon to introduce this long-term cyber security framework for the markets.
This move is imperative as looking at the technology-based platforms and the high speed algorithmic systems which has become a key aspect in order to have the trading activities, the board wishes to focus on the strengthening of the current framework.
This long term plans for cyber security of the market is also the prime focus area of the Sebi currently because of the technical errors the exchange was facing. The growing cases of cyber attack cases worldwide which has not spared our country too is yet another reason. This long term cyber security plan will make sure that a robust firewall is in place to prevent the impending cyber-attacks.
A number of dreaded ransomware attacks for exampleWannaCry and Petya have already created an impact on the computer systems globally. Also recently in the month of July, a technical glitch at the NSE, the country's largest stock exchange, had caused a halting of trading activities for more than three hours.
The legal news points out that the Securities and Exchange Board of India will have a detailed deliberation on the cyber security issues in its meeting that is scheduled on September 18. This meeting is expected to concentrate on the possible solutions that can be taken to create a long term cyber security plan.
What has already been decided is that to undertake an all-inclusive review of technology and systems at all the market institutions that also includes the stock market, to protect the marketplace from cyber threats and technical errors. The exchanges and other institutions are asked to keep an eye on the cyber threats occurring in the world and take learnings on putting the essential safeguards. It is recommended to them that they should be prompt and diligent in reporting to Cert-in and Sebi in the case of a technical issue that comes up which also includes the instances of the cyber-attacks.
The exchange board is also repeatedly emphasizing on the significance of sharing information in the cases of technology-related disruptions, cyber threats and attacks among MIIs in order to enhance their situational awareness. Sebi had already set up a high-level panel on cyber security in May this year to suggest solutions to protect the capital markets from such attacks.
The committee is formed to make recommendations to Sebi on how to develop and maintain the cyber security and cyber resilience requirements. They will also talk about best global practices and industry standards in line with the need of Indian capital market structure.
The national level stock exchange NSE and the BSE had already warned the market entities to protect themselves against a malicious software script that steals the information from personal computers and passes them outside the country.
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