Markets

Small brokers dont need own security centres

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, a Sebi circular on Friday said.

“During the discussions 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 a security operations centre (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,” the regulator said, adding that intermediaries would have the option of taking membership in the market SOC.

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 can opt for the market SOC,” Sebi said.

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