Sebi Slaps Penalty on Indian Clearing Corporation for Cybersecurity Lapses

Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 5.05 crore on Indian Clearing Corporation Ltd (ICCL) due to non-compliance with cybersecurity and disaster recovery frameworks. Sebi's inspection revealed that ICCL failed to maintain an up-to-date IT asset inventory, among other shortcomings.

The Securities and Exchange Board of India (Sebi) has announced a significant financial penalty on Indian Clearing Corporation Ltd (ICCL), citing multiple compliance failures. The market regulator imposed a Rs 5.05 crore fine following an extensive review of ICCL's cybersecurity measures and disaster recovery protocols.

In a detailed order, Sebi noted that ICCL neglected to adhere to crucial cybersecurity frameworks as well as disaster recovery regulations. The inspection revealed that the corporation failed to update IT asset inventories and inadequately addressed cyber audit observations.

Further discrepancies were identified in ICCL's audit processes, with the corporation submitting incomplete reports to Sebi. As a result, the penalty was sanctioned under the SEBI Act and the Securities Contracts (Regulation) Act, reflecting the gravity of non-compliance with the governing rules and standards.