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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Guidelines for MIIs regarding Cyber security and Cyber resilience

29-Aug-2023 | SEBI/HO/MRD/TPD/P/CIR/2023/146

Securities and Exchange Board of India (SEBI) has issued Guidelines for Market Infrastructure Institutions (MIIs) concerning cyber security and cyber resilience, effective from 29th August 2023.

Key highlights of the Guidelines are as follows:

1. Data Backups and Testing: MIIs are required to maintain encrypted offline backups of data and conduct regular testing of these backups at least on a quarterly basis. This ensures the confidentiality, integrity, and availability of data.

2. "Gold Images" of Critical Systems: MIIs should maintain updated "gold images" of critical systems. These images include preconfigured templates of operating systems and software applications that can be swiftly deployed to rebuild a system if necessary.

3. Vulnerability Scanning: Regular vulnerability scanning should be carried out by MIIs to identify and address vulnerabilities, especially on internet-facing devices. This practice helps in minimizing the potential attack surface.

4. Log Retention and Security: MIIs are expected to retain and securely store logs for various components such as security devices, applications, databases, operating systems, servers, cloud-hosted public-facing servers, endpoints, and network devices. Full verbosity of logs should be ensured.

5. Dark Web Monitoring: MIIs are advised to engage Dark Web monitoring services to monitor for any instances of brand abuse, data or credential leaks, etc.

It is important to note that MIIs must take necessary measures to implement these guidelines, including any required amendments to their byelaws, rules, and regulations, within 120 days from the issuance of the circular. The compliance with these guidelines should be reported by MIIs along with their cybersecurity audit reports conducted according to the SEBI Cybersecurity and Cyber Resilience framework, following the existing reporting mechanism.




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