MUMBAI: New vectors of risk are emerging in India's securities market as capital market participants increasingly rely on third-party service providers and cloud-based platforms, Tuhin Kanta Pandey, chairman of Sebi , said at the Global Fintech Fest 2025 on Wednesday.
"Sometimes these risks extend beyond traditional regulatory parameters," he warned, highlighting the vulnerabilities that come with rapid technological adoption. "Every leap in technology brings its own set of risks. Cybersecurity threats have the potential to create systemic disruptions. A single data breach or operational glitch can have cascading effects across interconnected systems."
Pandey outlined the measures Sebi has taken to mitigate these threats. "Under the Comprehensive Cybersecurity and Cyber Resilience Framework for Sebi-regulated entities, issued in Aug 2024, we have prescribed measures to ensure that regulated entities remain equipped with adequate cyber resiliency to withstand, respond to, and recover from cyber threats effectively," he said. Stressing that resilience is an ongoing process, he added, "Resilience is not a one-time achievement. It's a continuous process of learning, adapting, and anticipating."
While acknowledging risks, Pandey highlighted the transformative potential of technology. "Technology has become the regulator's most potent ally, enabling faster access to funds and reducing counterparty risk," he said. He cited innovations such as a two-way portability module across clearing corporations and the extension of ASBA to secondary markets through a UPI-blocked framework, which ensure smoother and safer transactions.
"Sometimes these risks extend beyond traditional regulatory parameters," he warned, highlighting the vulnerabilities that come with rapid technological adoption. "Every leap in technology brings its own set of risks. Cybersecurity threats have the potential to create systemic disruptions. A single data breach or operational glitch can have cascading effects across interconnected systems."
Pandey outlined the measures Sebi has taken to mitigate these threats. "Under the Comprehensive Cybersecurity and Cyber Resilience Framework for Sebi-regulated entities, issued in Aug 2024, we have prescribed measures to ensure that regulated entities remain equipped with adequate cyber resiliency to withstand, respond to, and recover from cyber threats effectively," he said. Stressing that resilience is an ongoing process, he added, "Resilience is not a one-time achievement. It's a continuous process of learning, adapting, and anticipating."
While acknowledging risks, Pandey highlighted the transformative potential of technology. "Technology has become the regulator's most potent ally, enabling faster access to funds and reducing counterparty risk," he said. He cited innovations such as a two-way portability module across clearing corporations and the extension of ASBA to secondary markets through a UPI-blocked framework, which ensure smoother and safer transactions.
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