Securities Board of Nepal (SEBON) implements information technology policy, tightens cyber security and risk management
लगानी न्यूज
Kathmandu. The Securities Board of Nepal (SEBON) has implemented the ‘Securities Board of Nepal Information Technology Policy, 2083’ with the objective of promoting the safe and effective use of information technology in the capital market. The board has implemented a new policy with effect from November 1, 2083.
The board has said that the policy has been brought with the objective of reducing technology-related risks in the capital market, strengthening regulatory capacity, increasing market fairness and transparency, and increasing investor confidence. The policy also incorporates provisions related to emerging technologies.TAG_OPEN_div_42
The new TAG_OPEN_div_40 policy aims to make the overall performance of the stock market and commodity exchange market effective, measurable and accountable through the development and expansion of information technology infrastructure.
The policy categorizes market-related agencies and market infrastructure institutions into three tiers on the basis of the state of information technology security. The first level consists of the Securities Board of Nepal, market directors and central deposit service providers, the second level consists of securities brokers, securities traders and merchant bankers and the third level is credit rating agencies and share registrars.TAG_OPEN_div_38
According to this classification, the concerned institution will have to comply with the necessary information technology security standards as per its working nature and responsibilities. The policy provides for a digital transformation of the regulation, operation and investment process of the stock market and the commodity exchange market. In addition, it aims to enhance the regulatory capacity and effectiveness of the board through the use of supervisory technology and regulatory technology.
The policy also includes provisions to facilitate and encourage the use of new technologies, including financial technology, through a regulatory sandbox. Disaster recovery mechanisms should be established and managed in line with international practice for the safe and sustainable use of records related to market transactions, settlement and settlement systems, central deposit systems and warehouses.TAG_OPEN_div_34
Similarly, important market infrastructure institutions and businesses will have to prepare business continuity plans and disaster recovery plans. The policy also provides for an annual examination and evaluation of these plans and a report on the same should be submitted to the board.
Proper examination of the service provider and vendor risk management has been made mandatory while purchasing information technology related services and equipment. Similarly, the agreement on information technology externalization has provisions to clarify the service level agreement, data protection obligations, regulatory audit rights and exit strategy from the service provider.
To further strengthen cybersecurity, market infrastructure institutions should establish security operations centers or arrange for round-the-clock monitoring of cyber risks through an accredited managed security service provider.TAG_OPEN_div_28
According to the Board, the new policy will expand the use of information technology in market regulation and activities, as well as help control technological risks, ensure the reliability and security of information systems.TAG_OPEN_div_26
The Board believes that this will create an important foundation for developing the overall capital market in line with international practices by making the use of technology more systematic, secure and transparent in the securities and commodity exchange market.TAG_OPEN_div_24
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