In recent times, there has been an increasing reliance on cloud computing to provide IT services.
Market watchdog Sebi on Monday came out with a framework for stock exchanges, clearing corporations to adopt cloud services.
Market watchdog Sebi on Monday came out with a framework for stock exchanges, clearing corporations and other regulated entities to adopt cloud services.
The cloud framework is designed to ensure basic security standards and comply with the legal and regulatory requirements of regulated entities (REs). It will be in addition to the existing circulars/instructions/advisories of Sebi.
“The main purpose of this structure is to show the main risks and mandatory control measures that should be implemented by the EE before using cloud computing. “The document also defines the regulatory and legal requirements of the JC if they make such decisions,” the report said.
The framework is effective immediately for all new or proposed cloud onboarding tasks/projects of the ROC.
For HE currently using cloud services, wherever possible, all such agreements should be reviewed and brought into compliance within 12 months.
In recent times, there has been an increasing reliance on cloud computing to provide IT services.
“Cloud computing offers many advantages, e.g. Ready to scale, ease of deployment, no overhead to maintain physical infrastructure, etc.
According to the regulator, the cloud system is a principle-based framework that includes governance, risk and compliance (GRC), selection of cloud service providers (CSPs), data ownership and data localization, RE due diligence, security controls, legality. and regulatory obligations, etc.
REs include depositories, stock brokers through exchanges, Asset Management Companies (AMCs)/Mutual Funds and KYC Registration Agencies (KRAs).
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(This story was not edited by News18 staff and was published by a syndicated news outlet)
