SEBI imposes Rs 1 crore penalty on CDSL for multiple compliance lapses found during inspection in FY24
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Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI imposed a Rs 1 crore penalty on CDSL for multiple compliance lapses found during an inspection in FY24.
- ✓The regulator said these deficiencies could affect market integrity and investor confidence.
- ✓CDSL faced issues with its pledge management system, cybersecurity measures, and disaster recovery arrangements, though it later started remedial measures.
Story at a Glance
- Category
- MARKET
- Reported By
- Moneycontrol
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
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Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 1 crore on Central Depository Services (India) Ltd (CDSL) for multiple compliance lapses, including shortcomings in its pledge management system, cybersecurity measures and disaster recovery arrangements.
In an adjudication order issued on Friday, SEBI said its inspection of CDSL for FY2023-24 had identified several instances of non-compliance with regulatory requirements. The violations included failure to communicate reasons for rejecting pledge requests to depository participants (DPs), inadequate safeguards against unauthorised data transmission and deficiencies in vulnerability assessment and penetration testing (VAPT).
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