Home / Business and Economy / Sebi Fines Anand Rathi ₹10 Lakh for Cyber Lapses
Sebi Fines Anand Rathi ₹10 Lakh for Cyber Lapses
14 Mar
Summary
- Broker fined ₹10 lakh for multiple regulatory norm violations.
- Inspection revealed weak password controls and lack of multi-factor authentication.
- Cyber incident was not reported within the six-hour stipulated timeframe.
The Securities and Exchange Board of India (Sebi) has imposed a ₹10 lakh penalty on Anand Rathi Share and Stock Brokers. This action follows a thematic inspection assessing the firm's compliance with Sebi's cyber security framework.
The inspection, conducted between April 2023 and August 2024, revealed several deficiencies. These included inadequate capacity monitoring mechanisms and weak password control implementation.
Additionally, the broker demonstrated a lack of data leakage prevention mechanisms and failed to enable multi-factor authentication for certain users. Sebi also noted insufficient vulnerability assessment and penetration testing coverage.
A significant lapse involved a cyber incident with unauthorized access, which was not reported to stock exchanges within the stipulated six hours of detection. The market watchdog's adjudicating officer confirmed multiple violations of Sebi's norms and stock brokers' regulations.
Anand Rathi Share and Stock Brokers has been directed to pay the ₹10 lakh fine within 45 days from the receipt of the order.
