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SEBI's Cybersecurity Framework: A Boon for the Indian Tech Industry
SEBI's Cybersecurity Framework: A Boon for the Indian Tech Industry

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SEBI-regulated entities will soon need to implement a framework to improve cyber security and cyber resilience, announced the market regulator in June 2024. The entities will need to adopt it based on their grading, which will be based on their extent of operations and certain thresholds in client numbers, trade volumes, and assets under management.

The new cybersecurity framework introduced by SEBI has specific implications and advantages for the tech industry in India:

Implications

  • Increased Development Costs: enterprises may need to allocate additional resources to develop and implement cybersecurity solutions that meet the framework's requirements.
  • Potential Delays in Product Launches: cybersecurity concerns could lead to delays in product launches or updates if additional testing or security measures are needed.

Advantages

  • Enhanced Market Trust: enterprises that demonstrate strong cybersecurity practices can gain the trust of investors and customers.
  • Competitive Advantage: enterprises that are ahead of the curve in cybersecurity can differentiate themselves from competitors and attract more business.
  • Reduced Liability: adhering to the framework can help tech companies reduce their liability in case of data breaches.
  • Innovation in Cybersecurity: the framework can stimulate innovation in the cybersecurity industry, leading to the development of new tools and technologies.

Some Considerations for Service Providers:

  • Data Privacy: services companies often handle large amounts of personal data, making them prime targets for cyberattacks. They must prioritize data privacy and implement robust measures to protect sensitive information.
  • Cloud Security: most service providers rely on cloud-based infrastructure. They must ensure that their cloud providers have adequate security measures in place and that they have appropriate controls over their data.
  • Vendor Security: enterprises often rely on third-party vendors. They must evaluate the cybersecurity practices of their vendors and ensure that their supply chain is secure.
  • Emerging Threats: they must stay updated on emerging cybersecurity threats, such as AI-powered attacks and IoT vulnerabilities, and take proactive measures to protect themselves.

By understanding the implications and advantages of SEBI's cybersecurity framework, enterprises can make informed decisions about their cybersecurity strategies and position themselves for success in the competitive market.


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