SEBI Plans to Hire Agency to Combat Security Threats

The market watchdog, the Securities and Exchange Board of India (SEBI), is considering to tie up with an agency to eradicate all glitches and grey areas in its information technology system. SEBI intends to mitigate all risks related to the securities market and improve its technology. 

In the recent past, the market regulator is heavily relying on technology to tackle challenges resulting due to the latest advancements in the securities market. The SEBI, in a notification, has invited interested parties to partner and service its information technology system. The interested parties can express their interest in partnering.  

The IT infrastructure of the SEBI includes security devices, networking systems, database, and servers. The agency selected will be in charge of assessing weak points and threats related to the market watchdog’s information technology system. This comes on the back of SEBI, deciding to combat all security threats.

Also Read: SEBI adopts waterfall approach, evaluates debt security and money market

The assessment of the IT system includes recognising any existing threats and coming up with corrective measures and suggestion to alleviate the identified risks and threats. The main objective of the market regulator is to enhance the security of the IT infrastructure.

The SEBI has said that the agency selected will be responsible for performing ‘vulnerability assessment and penetration testing’ (VAPT) to recognise misconfigurations, vulnerabilities, and other problems that can be used by external entities to harm the integrity and confidentiality for personal gains. 

The applicants interested to partner SEBI with this project should have a registered office in Indian and should be in operation for a minimum of three latest years. Also, the applicant must not be selling IT security products. Furthermore, the applicant should not be blacklisted due to any unethical practices in its business operations. 

The applicants are given a deadline of 22 October 2019 to express their interest by applying. SEBI’s move is coming at a time when numerous malware attacks have taken place across the globe. SEBI has continuously focused on technology to address various market challenges.

SEBI in May 2019 had invited bids for providing data solutions to handle an enormous amount of data from several sources. SEBI, in its 2018-19 annual report, has said that it is considering to use data analytics and other latest technologies to combat hurdles in the market.

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in

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