SEBI Issues Advisory for Regulated Entities for Best Cybersecurity Practices
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- Last Updated on 24 February, 2023
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Circular No. SEBI/HO/ITD/ITD_VAPT/P/CIR/2023/032, Dated 22.02.2023
The SEBI noticed that efficient and effective responses to and recovery from a cyber-incident by REs are essential to limit any related financial stability risks. For ensuring the same, Financial Computer Security Incident Response Team (CSIRT-Fin) has provided important recommendations to SEBI.
The compliance of the advisory shall be provided by the REs along with the cybersecurity audit. The compliance shall be submitted according to the existing reporting mechanism and frequency of the respective cybersecurity audit. The applicable recommendations in the form of advisory are enclosed in Annexure-A attached to the circular.
REs are advised to define the roles and responsibilities of the Chief Information Security Officer (CISO) and other senior personnel. Reporting and compliance requirements shall be clearly specified in the security policy.
The SEBI has also prescribed measures for Data Protection and Data breaches. Some of them are:
(a) REs are advised to prepare a detailed incident response plan.
(b) Enforce effective data protection, backup, and recovery measures.
(c) Encryption of the data at rest should be implemented to prevent the attacker from accessing the unencrypted data.
(d) Identify and classify sensitive and Personally Identifiable Information (PII) data and apply measures for encrypting such data in transit and at rest.
(e) Deploy data leakage prevention (DLP) solutions/processes.
Further, a Strong password policy should be implemented. The policy should include a clause for periodic review of accounts of ex-employees Passwords should not be reused across multiple accounts or a list of passwords should not be stored on the system.
Also, the REs are also advised to go for ISO certification as the same provides a reasonable assurance on the preparedness of the RE with respect to cybersecurity. Due diligence with respect to the audit process and tools used for such audits needs to be undertaken to ensure the competence and effectiveness of audits.
Click Here To Read The Full Circular
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