The move comes even as SEBI highlighted that there could be a case for MIIs to take services of their subsidiaries to carry out certain activities
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While MIIs are governed by Sebi and operate in compliance with its IT and cybersecurity frameworks, the applicability and regulatory jurisdiction of these framework are not explicitly defined over their subsidiaries.
Sebi proposed extending IT and cyber security rules to subsidiaries of market infrastructure institutions. This move aims to strengthen regulatory oversight over these evolving business structures. Subsidiaries undertaking core MII activities will now follow parent company's cybersecurity frameworks. Exemptions can be sought if subsidiaries do not meet specific criteria. Public comments on this proposal are due by October 2.
