Modification in Cyber Security and Cyber Resilience Framework of Mutual Funds/ Asset Management Companies (AMCs)
Summary
SEBI modifies the Cyber Security and Cyber Resilience Framework for Mutual Funds and AMCs to enhance industry standards. The circular mandates specific protocols for identifying critical assets, conducting VAPT, and reporting cyber incidents within strict timeframes. Compliance requires comprehensive cyber audits twice a year and executive certification of adherence to all relevant SEBI advisories.
Text
SEBI vide Circular No.SEBI/HO/IMD/DF2/CIR/P/2019/12 dated January 10, 2019 prescribed framework for Cyber Security and Cyber Resilience for Mutual Funds / Asset Management Companies (AMCs).
Mutual Funds/ AMCs shall identify and classify critical assets based on their sensitivity and criticality for business operations, services and data management. The Board of the AMCs and Trustees shall approve the list of critical assets. Mutual Funds/ AMCs shall maintain up-to-date inventory of its hardware and systems, software and information assets.
Mutual Funds/ AMCs shall conduct VAPT at least once in a financial year. However, for the Mutual Funds/ AMCs, whose systems have been identified as “protected system” by National Critical Information Infrastructure Protection Centre (NCIIPC), VAPT shall be conducted at least twice in a financial year. Further, all Mutual Funds/ AMCs shall engage only Indian Computer Emergency Response Team (CERT-In) empanelled organizations for conducting VAPT.
The final report on said VAPT shall be submitted to SEBI after approval from Technology Committee of respective Mutual Funds/ AMCs, within 1 month of completion of VAPT activity.
Any gaps or vulnerabilities detected shall be remedied on immediate basis and compliance of closure of findings identified during VAPT shall be submitted to SEBI within 3 months post the submission of final VAPT report.
In addition, Mutual Funds/ AMCs shall perform vulnerability scanning and conduct penetration testing prior to the commissioning of a new system which is a critical system or part of an existing critical system.
All cyber-attacks, threats, cyber-incidents, and breaches experienced by Mutual Funds/ AMCs shall be reported to SEBI within 6 hours of noticing/ detecting such incidents or being brought to their notice about such incidents. The incident shall also be reported to CERT-In... Additionally, the Mutual Funds/ AMCs, whose systems have been identified as “protected system” by NCIIPC, shall also report the incident to NCIIPC.
The quarterly reports containing information on cyber-attacks, threats, cyber-incidents, and breaches experienced by Mutual Funds/ AMCs and measures taken to mitigate vulnerabilities, threats and attacks including information on bugs/ vulnerabilities/ threats that may be useful for other Mutual Funds/ AMCs shall be submitted to SEBI within 15 days from the quarter ended June, September, December and March of every year.
The above information/ reports shall be shared through the dedicated e-mail ids: vapt_reports@sebi.gov.in and cybersecurity_amc@sebi.gov.in
Further, the Mutual Funds/ AMCs are mandated to conduct comprehensive cyber audit at least 2 times in a financial year. Along with the cyber audit reports, henceforth, all Mutual Funds/ AMCs are directed to submit a declaration from the Managing Director (MD)/ Chief Executive Officer (CEO) certifying compliance by the Mutual Funds/ AMCs with all SEBI Circulars and advisories related to cyber security from time to time.
Mutual Funds/ AMCs are required to take necessary steps to put in place systems for implementation of the circular, including modification of internal policies, if any.
The provisions of this Circular shall come into force with effect from July 15, 2022.
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Source: SecMarx — Modification in Cyber Security and Cyber Resilience Framework of Mutual Funds/ Asset Management Companies (AMCs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.