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SEBI has issued a circular in which it has allowed registered market intermediaries including fund houses and RTAs to leverage cloud computing to store and monitor data.
SEBI believes that cloud computing, a platform that keeps data electronically, offers host of advantages like ready to scale, ease of deployment and no overhead of maintaining physical infrastructure. However, AMCs should be aware of new cyber security risks and challenges while using cloud computing, clarified the market regulator.
In this context, SEBI has issued a framework to provide basic guidance note. The framework has 9 principals like selection criteria of cloud computing, maintenance of data, carrying out due diligence and deploying security checks and balances.
Talking about the rationale, the regulator said, “The major purpose of this framework is to highlight the key risks, and mandatory control measures which Regulated Entities need to put in place before adopting cloud computing.”
The framework comes to force with immediate effect. To view the complete framework, click here.
