SEBI Proposes Framework for IT Resilience Index at Market Infrastructure Institutions

Market Infrastructure Institutions (MIIs) to Implement IT Resilience Index (ITRI)

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a structured framework for an IT Resilience Index (ITRI) to assess and strengthen the technology systems of Market Infrastructure Institutions (MIIs). The index will measure the robustness of critical systems, as well as systems that support or feed into them.

Key Objectives and Parameters

The objective of the proposed index is to create a standardised, system-driven mechanism to evaluate the health and robustness of information technology (IT) systems critical to the functioning of MIIs. The ITRI will be computed using a uniform set of nine parameters, each assigned a specific weightage to ensure comparability across institutions:

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• Availability and security: 20% each
• Integrity, governance, reliability, and monitoring: 10% each
• Business continuity, modularity, and flexibility: 10% each
• Scalability and incident handling: 10% combined

Computation and Submission Requirements

The computation of the index should be largely automated, with scores derived directly from IT systems or system-generated data. MIIs will be required to compute the index on a half-yearly basis, within 60 days from the end of each half-year. The results must be submitted to SEBI within 90 days, along with comparative analysis of two consecutive periods, observations from governing boards or oversight committees, and details of corrective actions taken or proposed.

Implementation Timeline

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MIIs will operationalise the framework within six months of the proposal being finalised and issued as a circular. The first reporting cycle under the ITRI framework will be for the half-year ending September 30, 2026.

Public Comments and Next Steps

SEBI has invited public comments on the proposal until April 15, 2026. The Industry Standards Forum (ISF) of MIIs will finalise the detailed sub-parameters, scoring methodology, baseline thresholds, and standard operating procedures within three months of the issuance of the circular.