The Securities and Exchange Board of India (SEBI) on March 06, 2023, issued a framework for the adoption of Cloud Services by SEBI Regulated Entities (REs).
The major purpose of this framework is to highlight the key risks and mandatory control measures which REs need to put in place before adopting cloud computing. The document also sets out the regulatory and legal compliances by REs if they adopt such solutions.
The framework shall be applicable to Stock Exchanges, Clearing Corporations, Depositories Stock Brokers through Exchanges Depository Participants through Depositories, Asset Management Companies (AMCs)/ Mutual Funds (MFs), Qualified Registrars to Issue and Share Transfer Agents, KYC Registration Agencies (KRAs).
The framework shall come into force with immediate effect for all new or proposed cloud onboarding assignments/ projects of the REs.
REs which are currently availing cloud services (as of the date of issuance of this framework) shall ensure that, wherever applicable, all such arrangements are revised and they (RE) shall be in compliance with this framework not later than 12 (twelve) months from the date of issuance of the framework.
[Notification No. SEBI/HO/ITD/ITD_VAPT/P/CIR/2023/033]
