Mumbai, 26 February (IANS). The Securities and Exchange Board of India (SEBI) on Tuesday imposed a fine of Rs 5.05 crore on the Indian Clearing Corporation (ICCL), a subsidiary of Bombay Stock Exchange (BSE), to fail to follow the rules related to cyber security and system audit.
SEBI inspected the ICCL between December 2022 and July 2023 and later issued a ’cause’ notice in October 2024.
After reviewing the findings, the market regulator found several violations in the operation of ICCL.
A major issue in the violation was that the ICCL presented its network audit report to SEBI without any comment from its management or board.
As per the rules, the audit report should be reviewed by the first market infrastructure institutions and their response should be included before introducing SEBI within a month of completion.
SEBI also found that ICCL did not maintain an up-to-date inventory of IT assets including software classifications.
Although ICCL cyber audit twice a year, the issues raised in these audit were not resolved on time.
Another major violation was associated with ICCL’s disaster recovery system.
According to SEBI guidelines, one-to-one match between primary data center (PDC) and disaster recovery site (DRS) is required, but ICCL failed to ensure that.
The half-judicial authority of SEBI, G. Ramar, cited the 2010 report of Dr. Bimal Jalan Committee on Market Infrastructure Institutes while issuing the order.
The regulator directed ICCL to pay the fine within 45 days.
The committee report said, “These institutions (ie stock exchange, depository and clearing corporations) are systematically important for the financial development of the country and serve as the infrastructure necessary for the securities market. From the market infrastructure institutes (MII), therefore, they are ‘important economic infrastructure’. Are. Recent financial crisis has shown the importance of financial institutions for economic stability. “
-IANS
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