In recent times, there has been an increased reliance on cloud computing for providing IT services.
Markets watchdog SEBI on Monday introduced a framework for adoption of cloud services by stock exchanges, clearing corporations.
Markets watchdog SEBI on Monday came out with a framework for adoption of cloud services by stock exchanges, clearing corporations and other regulated entities.
The cloud framework is designed to provide baseline standards of security and legal and regulatory compliance by regulated entities (REs). This will be in addition to the existing circulars/guidelines/advisories of SEBI.
“The primary objective of this framework is to highlight the key risks and mandatory control measures REs need to implement before adopting cloud computing. The document also sets out the regulatory and legal compliances by REs if they adopt such solutions.” are,” it said in a circular.
The framework will be applicable immediately for all new or proposed cloud onboarding assignments/projects of REs.
For REs who are currently availing cloud services, they should ensure that all such arrangements, wherever applicable, are modified and brought into compliance with the framework within 12 months.
In recent times, there has been an increased reliance on cloud computing for providing IT services.
“While cloud computing offers many advantages. Ready to scale, ease of deployment, no overhead of maintaining physical infrastructure, etc. REs also need to be aware of new cyber security risks and challenges that cloud computing may pose. Present,” Sebi said.
According to the regulator, the cloud framework is a principles-based framework that covers governance, risk and compliance (GRC), selection of cloud service providers (CSPs), data ownership and data localisation, due diligence by RE, security controls, legal . and regulatory obligations, among others.
REs include depositories, stock brokers through exchanges, asset management companies (AMCs)/mutual funds and KYC registration agencies (KRAs).
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
