Sebi Chairman Tuhin Kanta Pandey Highlights Importance of Continuous Capacity Building for Cyber Resilience

Sebi Chairman Tuhin Kanta Pandey emphasised the need for ongoing capacity building to improve cyber resilience and incident response in the securities market. Addressing a Cybersecurity Training Programme at the National Institute of Securities Markets, he highlighted that this process is continuous, requiring constant learning and adaptation due to the ever-changing threat landscape.

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Pandey stressed that even minor technical issues can have significant impacts. He cited an example from 2012 involving Knight Capital in the US, where outdated code in new software led to erroneous trades worth billions within 45 minutes, resulting in USD 440 million in losses and the company's downfall.

Cybersecurity and Financial Markets

Cyberattacks are increasingly common and rank among the top-five global risks by likelihood over the next decade. Given the high-value transactions and interconnected systems in financial markets, Pandey highlighted the necessity for heightened vigilance and preparedness to safeguard these systems.

He underscored the importance of protecting critical infrastructure like exchanges, clearing corporations, and depositories. These are considered infrastructure of national importance as their smooth operation supports capital formation, investor confidence, and economic resilience.

Human Element in Cybersecurity

While technology plays a crucial role in cybersecurity, Pandey pointed out that human factors remain a significant line of defence. Many breaches occur due to human errors, phishing attacks, or accidental disclosure of sensitive information. Therefore, continuous training and monitoring are essential to maintain market security.

Pandey urged IT professionals to focus on preserving trust alongside preventing theft. He encouraged ongoing training and readiness to ensure robust market security. "Your role is as much about preserving trust as it is about preventing theft," he stated.

Proactive Measures Against Cyber Threats

In a rapidly changing threat environment, staying ahead is crucial for survival. Pandey noted that prevention is more cost-effective than dealing with consequences after an attack. He advocated for proactive measures to protect against potential cyber threats.

The emphasis on capacity building reflects a broader strategy to fortify the securities market against cyber risks. By enhancing skills and knowledge continuously, professionals can better respond to incidents and safeguard critical systems effectively.

With inputs from PTI