Securities Exchange Board of India (SEBI) has drafted a Cybersecurity and Resilience Framework that will probably be released once the feedback comes from the industry, informed Kamlesh Varshney, Whole-Time Member, said on Saturday at the ANMI-organized 13th International Convention 2024 in the capital.
“SEBI has prepared a cybersecurity framework. It is ready and has already been given to the Industry Standards Forum for Brokers for their comments. They will come back by month end, and then we will take it forward.”
He urged the broking fraternity to adopt the framework when released so as to guard their transactions against cyber attacks.
Varshney, however, admitted that giving a deadline for releasing the framework would be a challenge but added that it would be binding on all market intermediaries and players in the ecosystem.
Varshney’s remarks come when cybersecurity is a looming threat in equity markets.
Lately, a leading brokerage house – Motilal Oswal Financial Services- became a victim of a ransomware attack. The firm, however, confirmed that its operations were not affected following a cyber incident.
Advise To Brokers: Follow Tech Developments Globally
Varshney prodded the Broking fraternity into keeping a close eye on technology developments across the globe and finding suitable ways to integrate them within their businesses.
“Those who understand new technology and incorporate it into their business will survive. Others may fall by the wayside”, he said.
Varshney highlighted that while many brokers have run out of business, many new brokers have emerged and captured the market. “That is because new technology came in 2000, and they were able to outperform everyone else”.
He later accentuated how Artificial Intelligence (AI) and other new technologies are reshaping the world.
Investor Contribution In Viksit Bharat:
Varshney underscored the doubling of resource mobilization through equity markets in the last four years.
“We are on track. If we (the capital market ecosystem) are growing like this, we are contributing our bit to making India a Viksit Bharat in 2047. We will continue to grow”, he said.
“You can have good tech and cybersecurity, but everything will fail if there is no trust of investors. In my opinion, trust of investors is a critical part of capital markets”.