Market regulator Securities and Exchange Board of India (Sebi) is planning to come out with a cyber security framework for stock brokers that will assist in cutting the impact of potential risks by cyber fraud, data leaks and hacking of trading accounts, a top official said on Wednesday.
The framework, targetted at protecting stock brokers and also their clients, would include measures, tools and processes that are intended to prevent cyber-attacks and improve cyber resilience, Association of National Exchanges Members of India President Kamlesh Shah said. The move is part of the capital markets regulator's investors safeguard mechanism. The Sebi has set-up a panel that consists of representatives from the regulator, stock exchanges and National Exchanges Members, for framing the guidelines. The rapid technological developments in the securities market have highlighted the need for having a robust cybersecurity and cyber resilience framework for stock brokers to protect the integrity of data and guard against breaches of privacy.
"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," Shah said.
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