SEBI's IT Resilience Index: A Game Changer for Markets

The Securities and Exchange Board of India (SEBI) has introduced a new framework establishing an IT Resilience Index (ITRI) for market infrastructure institutions (MIIs). This initiative aims to bolster the reliability and resilience of critical technology systems operated by entities such as stock exchanges, clearing corporations, and depositories.

The ITRI will quantitatively assess the robustness of MIIs' essential systems. It operates on a 100-point scale, evaluating nine distinct parameters. Key areas like availability and security each hold a significant weight of 20 points, reflecting their importance in market operations. Other parameters, including integrity, governance, and business continuity, are also factored into the overall score.

Under the new framework, MIIs are obligated to calculate and report their ITRI results on a biannual basis. They must compare these scores against previous periods and submit any corrective actions taken to their governing bodies. Furthermore, SEBI has mandated an Early Warning System designed to proactively identify any degradation in ITRI parameters that could foreshadow performance degradation or system slowdowns.

The detailed sub-parameters and measurement criteria for the ITRI framework are slated to be finalized by the Industry Standards Forum of MIIs by November 30, 2026. The ITRI framework, early warning system, and continuous service monitoring are expected to be fully operational by February 28, 2027. The first ITRI submission will cover the half-year concluding March 31, 2027.