India’s securities markets are rapidly digitalising, with banks, stock exchanges, asset managers, and intermediaries increasingly shifting to cloud infrastructure. This digital shift offers benefits like scalability and efficiency but also introduces new cybersecurity risks that can threaten investor trust and market stability. To address these risks, the Securities and Exchange Board of India (SEBI) has developed a detailed cloud security framework. This guide explains why these requirements matter, who they impact, and how regulated entities can implement them effectively.
Why Cloud Security Matters in Indian Capital Markets
Nearly 80% of banks in India already use cloud services for core operations. However, moving critical workloads to the cloud increases the chance of data leaks, cyberattacks, and human errors. A single disruption can have far-reaching consequences, as seen with international incidents like Knight Capital’s $440 million trading mishap.
For SEBI, cloud security is not simply a compliance issue—it is central to safeguarding investors, maintaining…
