Sebi proposes framework to address risks linked with cloud-based solutions

Capital markets regulator Sebi has proposed a cloud framework for its regulated entities, highlighting key risks and control measures such entities need to consider before adopting cloud-based solutions.

The proposed framework outlines the regulatory and legal expectations from Sebi-regulated entities (REs) if they adopt cloud computing solutions.

“In recent times the dependence on cloud solutions for delivering information technology (IT) services is increasing.

“While cloud solutions offer multiple advantages — ready to scale, ease of deployment, no overhead of maintaining physical infrastructure among others — an RE should also be aware of the new cyber security risks and challenges which cloud solutions introduce,” the regulator said in its consultation paper.