Sebi To Appoint Advisor To Thwart Cyber-Attacks

by CXOtoday News Desk    Aug 07, 2017

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To protect securities markets from cyber-attacks and technical glitches, Securities and Exchange Board of India (Sebi) is looking to further beef up its policy framework. The regulator plans to appoint an advisor to look at cyber security and other IT initiatives. Sebi has already asked stock exchanges and other institutions to keep a constant vigil on online threats globally and take lessons to put in place necessary safeguards.

The advisor for cyber security and information technology will be responsible for strengthening its regulatory policy framework in this space, it told Economic Times. The advisor would monitor implementation of these regulatory policies across securities markets and also help enhance capacity building at Sebi and various market participants with respect to cyber security.

The officer would also develop a stress testing mechanism to mitigate risks arising out of cyber-attacks while a framework will be put in place for taking correctives and a prudent response in case of such an emergency at the regulator or market participants. The officer would also formulate IT strategy and identify specific initiatives and a 5-year road map, it said.

Sebi has reportedly invited applications from eligible persons for the post of Advisor, Cyber Security and Information Technology, who will need at least 10-15 years of experience in cyber security/IT, audit of IT systems, assessment and implementation of business continuity and disaster recovery programs and development of critical IT systems.

The person should have experience at a fairly senior level as head of a large unit of an IT company or an IT unit of a bank, financial institution or market infrastructure institution. The advisor will be appointed on ‘contract and part time basis’ for three years.

In May, Sebi formed a high level panel on cyber security to suggest measures to safeguard the capital markets from such attacks. The four-member committee would be chaired by Madhabi Puri Buch, whole time member at Securities and Exchange Board of India (Sebi). The other members are S V Murali Dhar Rao, Executive Director at Sebi; Sanjay Bahl, Director General at Indian Computer Emergency Response Team (CERT-In) and H Krishnamurthy, Principle Research Scientist at IISC Bangalore, as per the latest update with Sebi.

The panel will oversee and provide overall guidance on cyber security initiatives to Sebi and for the entire capital market. Besides, it will advise Sebi in developing and maintaining cyber security and cyber resilience requirements aligned with global best practices and industry standards in accordance with the need of Indian capital market structure. It will also identify measures to improve cyber resilience and related business continuity and disaster recovery process in Indian securities market.

The committee has been formed to study major cyber-attack incidents related to financial markets in domestic and global markets and identify gaps in the existing cyber security and cyber resilience framework. Besides, it will periodically review the mandate and functioning of Security Operations Centers and will guide Sebi in setting up Cyber Center of Excellence for securities market.

It is also designed to engage in continuous dialogues with relevant external agencies such as CERT-In, National Cyber Coordination Centre (NCSC), Department of Telecommunications (DoT), Ministry of Electronics and Information Technology (MeitY), and leading academic institutions and organisations, among others to further strengthen cyber security and cyber resilience.

The committee would provide recommendations for strengthening of processes to audit cyber security and cyber resilience setups in Indian securities market.