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Depositories to set up IT strategy panels: SEBI

In December 2012, SEBI had constituted the Depository System Review Committee (DSRC) to undertake a comprehensive review of the Indian depository system

January 22, 2014 11:26 IST | India Infoline News Service
Market regulator SEBI (Securities and Exchange Board of India) on Tuesday asked depositories to formulate information technology strategy panels in order to strengthen the IT governance framework of their systems.

In December 2012, SEBI had constituted the Depository System Review Committee (DSRC) to undertake a comprehensive review of the Indian depository system.

Depositories have the mandate to help companies convert their physical shares into dematerialised form and thereafter maintain those shares, and also supervise proper conversion and reconciliation of their total share capital by the companies.

Depositories will now have to formulate an IT strategy committee at board level to provide insight and advice in various areas that include developments in IT from a business perspective and competitive aspects of IT investments, the SEBI said in a circular.

The Depositories shall create an Office of Information Security and designate a senior official as Chief Information Security Officer (CISO) whose work would be to assess, identify and reduce information technology (IT) risks, respond to incidents, establish appropriate standards and controls, and direct the establishment and implementation of policies and procedures, it added.

The regulator said that depositories will have to formulate an executive level IT steering committee to assist the IT strategy committee in implementation of the framework.
The IT steering committee should comprise of representatives from IT, Human Resources (HR) and legal among others.

The depositories will have to formulate an IT strategy document and an 'information security policy' which should be approved by the Board and reviewed annually.


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