SEBI Slaps ₹10 Lakh Fine On Anand Rathi For Cybersecurity Violations & Non-Reporting Of Incident

New Delhi: Capital markets regulator Sebi on Friday levied a fine of Rs 10 lakh on Anand Rathi Share and Stock Brokers for multiple violations of regulatory norms. The order came after the regulator conducted a thematic inspection of Anand Rathi Share and Stock Brokers to look into the status of compliance with Sebi's Cyber Security framework. The inspection was conducted for the period from April 2023 to August 2024.

The market watchdog observed several lapses during the inspection of the broker's systems and processes. These included inadequate capacity monitoring mechanisms, weak password control implementation, lack of data leakage prevention mechanisms and failure to enable multi-factor authentication for some users, as per the order.

Visit asg-reflektory.pl for more information.

SEBI Explores Cost-Cutting Regulatory Reforms Through Special Committees And Impact Assessments: Chairman Tuhin Kanta Pandey

Sebi noted deficiencies in vulnerability assessment and penetration testing (VAPT) coverage. It observed that a cyber incident involving unauthorised access was not reported to the stock exchanges within the stipulated six hours of detection, as required under the cybersecurity framework.,After examining the inspection findings, the markets regulator's adjudicating officer concluded that multiple violations of Sebi's norms and stock brokers' regulations were established. Accordingly, the regulator slapped a penalty of Rs 10 lakh on Anand Rathi Share and Stock Brokers. The broker has to pay the fine within 45 days. 

Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.

Read full story at source