SEBI Launches IT Resilience Index for Market Infrastructure

SEBI has rolled out an IT Resilience Index targeting market infrastructure institutions to bolster critical systems and operational resilience, according to the announcement. The framework operates on a 100-point scale and will assess nine distinct parameters on a semi-annual basis. The regulatory measure incorporates early-warning mechanisms and mandates real-time monitoring capabilities, with institutions required to achieve full compliance by February 2027. The index represents SEBI's commitment to ensuring that market infrastructure—exchanges, clearinghouses, and depositories—maintain robust technological defenses against operational disruptions and cyber threats.

For market participants and investors, this regulatory push carries significant implications for financial system stability. A stronger IT resilience framework at infrastructure institutions reduces systemic risk and protects against cascading failures that could disrupt trading, settlements, and custody operations. Enhanced cybersecurity standards also strengthen investor confidence in market integrity. The semi-annual assessment cycle and real-time monitoring requirements signal SEBI's proactive stance toward identifying vulnerabilities before they escalate into operational crises. As digital threats evolve and trading volumes increase, regulatory frameworks that mandate continuous resilience auditing become essential safeguards for orderly market functioning, particularly in emerging markets where infrastructure modernization remains ongoing.

Source: Markets-Economic Times