SEBI slaps penalty on Indian Clearing Corporation over regulatory lapses

SEBI News: Capital market regulator Securities and Exchange Board of India (SEBI) on Tuesday slapped a penalty on Indian Clearing Corporation Ltd (ICCL) over certain regulatory lapses. The amount of the penalty was Rs 5.05 crore, according to SEBI. 

The market regulator conducted an inspection of Indian Clearing Corporation's books and records for the period between December 1, 2022, to July 31, 2023.

During its investigation, the regulator found non-compliance with key regulatory provisions, particularly in cybersecurity and disaster recovery, according to SEBI. 

SEBI Fines ICCL Over Regulator Lapses | What are the main allegations?

Here are the three main allegations against Indian Clearning Corporation, according to the SEBI order dated February 25:

Non-compliance With Cyber Security and Cyber Resilience Framework

According to SEBI, Indian Clearning Corporation failed to maintain an up-to-date IT asset inventory, including software assets and criticality classification.

It also did not close cyber audit observations within a time-bound manner, despite conducting the audit as required, the regulator said. 

Non-compliance With System and Network Audit Requirements 

SEBI said that ICCL submitted its network audit report to it without management or board comments.

Later on, the ICCL board claimed all audit observations were addressed, said SEBI.

However, the regulator said that it found that IT asset inventory issues were still unresolved.

Non-compliance With Business Continuity Plan (BCP) and Disaster Recovery (DR) Guidelines 

SEBI mentioned a mismatch between the configurations of primary servers (PDC) and disaster recovery servers (DRS), violating its one-to-one correspondence guidelines.

When will ICCL have to pay the SEBI penalty?

 The regulator asked ICCL to pay the penalty within 45 days of receiving its order. 

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