The Market Regulator Securities and Exchange Board of India (SEBI) on Tuesday imposed a fine of Rs 5.05 crore on Indian Clearing Corporation Limited (ICCL), a subsidiary company of Bombay Stock Exchange (BSE). According to PTI news, SEBI has taken this action on ICCL for not following cyber security and disaster recovery structure. The market regulator has directed to repay the fine within 45 days.
The company does this work
ICCL was included in 2007 as a fully owned subsidiary of BSE Limited. It works as a clearing, disposal, collateral management and risk management for different sections of BSE. Securities and Exchange Board of India (SEBI) to find out whether ICCL has complied with the provisions of SEBI rules, books of accounts of Indian Clearing Corporation Limited for the period of December 1, 2022 to 31 July, 2023 And inspected other records.
SEBI found flaws in inspection
In his inspection, SEBI, the regulator, especially found the non-approval of the major regulatory provisions in cyber security and disaster recovery. The regulatory found non-compliance with cyber security and cyber flexibility structure as well as system and network audit needs. SEBI found that ICCL failed to maintain an updated IT asset list including software assets and criticality classification. Also, ICCL did not close cyber audit comments within the time limit despite auditing as required.
Violation of disaster recovery rules
ICCL’s backup systems were not fully synchronized with their primary system, violating disaster recovery rules. This also indicates that ICCL’s IT asset list was not properly maintained. ICCL presented a network audit report to SEBI without management or board comments.
Clearing Corporation presented its network audit report to SEBI on August 4, 2023 without the board’s comments. ICCL later reported a report before the board on August 10, 2023 and the board approved it without any comment on August 14, 2023.
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