Cyber audit mandatory for stockbrokers
According to SEBI, stockbrokers and depository participants should regularly assess the vulnerabilities related to cyber security. This work must be done at least once in a financial year.
market regulator SEBI ,SEBI) on Tuesday made it mandatory for stockbrokers as well as depository participants to conduct a comprehensive cyber audit at least once in a financial year with a view to streamlining the cyber security regime for them. In a circular issued by the Securities and Exchange Board of India (SEBI), the share broker (Stock Broker) and was informed about tightening cyber security related provisions for depository participants. The stock brokers and depository participants have been asked to submit a declaration from the Managing Director (MD) and Chief Executive Officer (CEO) along with the Cyber Audit Report to the stock exchanges and depositories as per the guidelines of SEBI and issued from time to time. The advice regarding cyber security has been complied with.
Audit required at least once in a financial year
The revised framework for cyber security requires brokerage firms and depository participants to identify and classify assets as critical to business operations, services and data management on the basis of sensitivity and importance. Systems critical to business, Internet-facing applications, systems containing sensitive data, sensitive personal data, sensitive financial data, and personally identifiable information will be considered critical assets during this period. According to SEBI, stockbrokers and depository participants should regularly assess the vulnerabilities related to cyber security. This work must be done at least once in a financial year. The respective stockbrokers and depository participants should submit the final report approved by their technology committee to SEBI within one month of the completion of this test.
The interests of investors will be protected
This exercise to secure cyber security will protect the interests of investors. In fact, due to the falling of information in the wrong hands, the risk of investors’ investments increases. Due to frequent audits, brokers will be able to understand the weak aspects of their system and also correct them in time.