SEBI Proposes Unified IT Compliance Framework for MIIs

SEBI has released a consultation paper proposing a comprehensive review and consolidation of the information technology (IT) framework applicable to Market Infrastructure Institutions (MIIs). The proposal aims to simplify compliance requirements, eliminate overlapping provisions and promote a uniform regulatory approach across different segments of the securities market.

Stakeholders may submit their comments on the proposal by 13 July 2026.

1. Consolidation of Existing IT Framework

SEBI has proposed to consolidate various IT-related regulatory provisions currently applicable to Market Infrastructure Institutions.

The initiative seeks to create a unified framework by consolidating dispersed requirements across multiple circulars and regulatory documents.

2. Merger of Existing Master Circular Provisions

As part of the proposed rationalisation exercise, SEBI intends to merge:

• IT-related provisions contained in the Master Circulars applicable to Stock Exchanges and Clearing Corporations; and
• Similar provisions governing the Commodity Derivatives Segment.

The consolidation is expected to ensure consistency in the regulatory treatment of technology, cybersecurity and operational resilience across market segments.

3. Simplification of Compliance Requirements

One of the primary objectives of the proposal is to simplify compliance obligations for MIIs by:

• Removing duplicate and overlapping requirements;
• Rationalising reporting and governance provisions; and
• Streamlining regulatory expectations relating to information technology systems.

This is expected to reduce compliance complexity while maintaining robust technology and cybersecurity standards.

4. Elimination of Redundancies

SEBI has observed that several IT-related requirements have evolved over time through multiple circulars and amendments.

The proposed framework seeks to:

• Remove redundant provisions;
• Harmonise similar requirements; and
• Improve regulatory clarity.

This will facilitate easier interpretation and implementation by regulated entities.

5. Promoting Consistency Across MIIs

The proposed consolidation aims to establish a uniform technology governance framework for Market Infrastructure Institutions, including:

• Stock Exchanges;
• Clearing Corporations; and
• Commodity Derivatives Market Infrastructure entities.

The harmonised approach is intended to strengthen operational resilience and ensure consistent regulatory standards across the securities market ecosystem.

6. Objective of the Proposal

The proposal seeks to:

• Simplify IT-related compliance requirements;
• Eliminate duplication and regulatory overlap;
• Improve consistency across market segments;
• Enhance regulatory clarity; and
• Strengthen technology governance and operational resilience of MIIs.

7. Public Comments Invited

SEBI has invited comments and suggestions from stakeholders on the consultation paper.

Last date for submission of comments: 13 July 2026.

8. Key Takeaway

SEBI has proposed a comprehensive consolidation of information technology-related norms applicable to Market Infrastructure Institutions (MIIs) by merging the relevant provisions contained in the Master Circulars for Stock Exchanges, Clearing Corporations and the Commodity Derivatives Segment. The proposal aims to simplify compliance, remove redundancies and establish a uniform technology governance framework across the securities market infrastructure ecosystem.

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