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New investors registration in the mutual fund industry has been affected due to temporary disruption of KYC process by one of leading KYC Registration Agency (KRA) CVL following a malware attack.
CDSL has confirmed that it witnessed a malware attack on November 18 due to which few of their machines were affected. It said, “Since CVL network is linked to that of CDSL, as a matter of abundant caution, we immediately isolated the machines at CDSL and CVL and disconnected ourselves from other constituents of the capital market for further assessment. As per the initial findings, there is no reason to believe that any confidential information or investor data has been compromised. The CDSL team has reported the incident to the relevant authorities and is working with its cyber security advisors to analyse the impact.”
The company assured that its systems will be restored by November 23. “As per the cyber security protocol, the entire IT infrastructure of CVL needs to be scanned and cleared for Operations. In view of this process, Intermediaries would not be able to access our systems from 6 pm today 21st November, 2022 till 6 pm on Wednesday 23rd November, 2022,” it said.
The mutual fund industry added 17 lakh new investors in the first six month of FY 2023. On an average, the industry saw monthly addition of 3 lakh investors between April – September 2022. The disruption in KYC would impact this momentum.
