No need for smaller brokers to go for own cyber security: Sebi

Mumbai: Small stock brokers will not be required to have their own cyber security framework and can use the facility set up by stock exchanges.

"During the discussions held with the market participants, it was gathered that compliance with the cyber security guidelines may be onerous for smaller intermediaries because of the lack of knowledge in cyber security and also the cost factor involved in setting up own Security Operations Center (SOC)," Sebi said in a circular posted on its website on Friday. "These intermediaries may utilise the services of Market SOC which is proposed to be set up by market infrastructure institutions with the objective of providing cyber security solution to such intermediaries."

Intermediaries would have the option of taking membership in market SOC, the regulator said.

Sebi also said the market SOC would be a separate entity and market infrastructure institutions would have at least 51 per cent stake in the new entity.

"Intermediaries who dont have capability to set up an SOC on their own can opt for the market SOC," Sebi said.

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