The Securities and Exchange Board of India (SEBI) is prioritizing cybersecurity as an essential requirement for market integrity, moving beyond mere regulatory compliance. This focus is central to maintaining a secure environment that encourages participation from investors and market participants in day-to-day market activities.
While addressing an event, SEBI Chief Tuhin Kanta Pandey emphasized the gravity of the threat: “Cybersecurity remains a foremost concern for all market participants. Firms must safeguard sensitive client data and critical infrastructure from sophisticated threats.” He noted that risks are growing due to increased reliance on technology vendors, stating that third-party and outsourcing risks now demand “stronger oversight and due diligence.” The rise of algorithmic and high-frequency trading further complicates the landscape, requiring “robust risk controls, real-time monitoring, and compliance safeguards.” Pandey concluded that the “next frontier” for market stability lies in anticipating risks before they surface.
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Echoing this proactive sentiment, cybersecurity expert Ritesh Bhatia stressed the need for “real readiness” beyond compliance. Bhatia stated, “When regulators such as Securities and Exchange Board of India stress cyber-security beyond mere compliance, what they’re really pointing to is the need for real readiness. That means having an incident-response plan that’s been battle-tested, seeing the drill not as an optional exercise but a must.”
Bhatia also highlighted the importance of data protection, advocating for “privacy-enhancing technologies so that even if a breach happens the data becomes unusable by attackers.” He summarized the essential strategy for resilience: “In short: preparation, response, and data invisibility must be the pillars of a resilient cyber-defence posture.” This collective focus underscores the urgency of building robust, resilient, and adaptive cyber-defenses across the financial sector.
