SEBI's New Cloud Security Framework to Safeguard India's Capital Markets

As India’s capital markets increasingly adopt cloud technologies, SEBI has rolled out a comprehensive Cloud Security Framework to manage the emerging cyber risks. The framework requires all SEBI-regulated entities, such as stock exchanges, depositories, fund houses, and intermediaries, to implement strict measures including data encryption (in transit and at rest), multi-cloud security controls, vendor risk assessment, and incident response capabilities.

Given that nearly 80% of Indian banks already use cloud services, the new norms aim to close critical gaps in cloud governance, identity and access controls, and third-party dependencies. Entities must also ensure business continuity via redundant deployments and disaster recovery drills. SEBI’s push reflects the regulator’s intent to preserve investor trust, contain reputational risks, and align India’s financial ecosystem with global security standards.

Source: indiatimes.com