The Securities and Exchange Board of India (Sebi) has proposed introducing the IT Resilience Index for market infrastructure intermediaries (MIIs) which will provide details of their information technology systems’ health and resilience. This will enable such market players to compare the efficacy of their IT systems, identify areas of improvement, and create a uniform set of metrics to compare the index across intermediaries, Sebi said in a consultation paper on Tuesday.
Public comments on the proposal are to be submitted by April 15. The markets regulator also issued a draft circular on the matter after discussing with its Technical Advisory Committee.
About nine parameters have been identified for computing the index, with availability and security having the highest weightage of 20% each. Other parameters such as integrity, governance, reliability and monitoring, business continuity, and modularity and flexibility have the second-highest weightage of 10% each. The Sebi-constituted Industry Standards Forum for market intermediaries will finalise sub-parameters and detailed measurement criteria.
MIIs should compute the IT index on a half-yearly basis within 60 days from the end of the period. The index will be computed from IT systems without any manual interventions. The framework will be operational within six months of the issuance of the formal circular.