In current instances, the dependence on cloud computing for delivering the IT providers has been on the rise.
Markets watchdog Sebi on Monday got here out with a framework for the adoption of cloud providers by inventory exchanges, clearing companies.
Markets watchdog Sebi on Monday got here out with a framework for the adoption of cloud providers by inventory exchanges, clearing companies and different regulated entities.
The cloud framework has been drafted to offer baseline requirements of safety and for the authorized and regulatory compliances by the Regulated Entities (REs). It shall be along with the present circulars/tips/advisories of Sebi.
“The main function of this framework is to focus on the important thing dangers, and obligatory management measures which REs must put in place earlier than adopting cloud computing. The doc additionally units out the regulatory and authorized compliances by REs in the event that they undertake such options,” it said in a circular.
The framework will come into force immediately for all new or proposed cloud onboarding assignments/projects of the REs.
For REs that are currently availing cloud services should ensure that wherever applicable, all such arrangements are revised and they should be in compliance with the framework within 12 months.
In recent times, the dependence on cloud computing for delivering the IT services has been on the rise.
“While cloud computing offers multiple advantages viz. ready to scale, ease of deployment, no overhead of maintaining physical infrastructure etc., the RE should also be aware of the new cyber security risks and challenges which cloud computing introduces,” Sebi famous.
According to the regulator, the cloud framework is a principle-based framework that covers Governance, Risk and Compliance (GRC), choice of Cloud Service Providers (CSPs), knowledge possession and knowledge localisation, due- diligence by REs, safety controls, authorized and regulatory obligations, amongst others.
The REs embody depositories, inventory brokers by way of exchanges, Asset Management Companies (AMCs)/mutual funds and KYC Registration Agencies (KRAs).
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