SEBI's New Securitisation Rules: Key Investor Safeguards
The Securities and Exchange Board of India (SEBI) has imposed a penalty of ₹12 lakh on NSE Data And Analytics Ltd due to multiple regulatory infractions identified during an inspection. This fine highlights ongoing concerns about compliance within financial institutions and the importance of maintaining stringent operational standards in the market.
SEBI’s inspection, conducted on September 6-7, 2023, scrutinized NSE Data And Analytics’ operations as a KYC Registration Agency from April 2022 to July 2023. The regulator found significant irregularities, including:
NSE Data And Analytics asserted that it had taken corrective steps in response to SEBI’s findings, but the regulator emphasized that as a separate legal entity, the company bears full responsibility for its compliance.
This ruling serves as a reminder of the stringent standards expected from financial institutions in India, particularly regarding cybersecurity, KYC processing, and corporate governance. The imposed fine underscores the need for rigorous compliance measures to protect investor interests and maintain market integrity.
| Key Points | Details |
|---|---|
| Why in News | SEBI imposed a ₹12 lakh fine on NSE Data and Analytics for regulatory violations during an inspection. |
| Inspection Period | SEBI’s inspection was conducted on September 6-7, 2023, covering NSE Data And Analytics’ operations from April 2022 to July 2023. |
| Key Violations Identified | – Lack of IT Infrastructure Segregation between NSE Data And Analytics and NSE. – Delayed Acknowledgment Letters (61 cases, exceeded 10-day limit). – Cybersecurity Lapses (unaddressed vulnerabilities, deficiencies in data center security). |
| Corrective Actions Taken | NSE Data And Analytics has taken corrective actions but is fully responsible for compliance. |
| Fine Imposed | ₹12 lakh penalty imposed by SEBI for the violations. |
| Regulatory Role | SEBI is the regulator overseeing compliance in the Indian financial market, emphasizing strict adherence to operational standards. |
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