SEBI Launches IT Resilience Index for Indian Markets

The Securities and Exchange Board of India (SEBI) recently introduced an IT Resilience Index (ITRI) framework for Market Infrastructure Institutions (MIIs).

This initiative, announced on Monday, aims to significantly enhance the reliability and robustness of technology systems underpinning India’s securities market.

Understanding the ITRI Framework

The ITRI framework is designed to measure the strength of critical systems within MIIs, which include stock exchanges, clearing corporations, and depositories. Its primary goal is to identify emerging weaknesses proactively, enabling timely corrective actions.

This proactive approach seeks to prevent disruptions, performance degradation, or compromises that could impact crucial market operations and investor confidence.

Key Metrics and Scoring

The index operates on a 100-point scale across nine distinct parameters, with specific weights assigned to each area:

• Availability: 20 points
• Security: 20 points
• Integrity: 10 points
• Governance: 10 points
• Reliability and monitoring: 10 points
• Business continuity: 10 points
• Modularity and flexibility: 10 points
• Scalability: 5 points
• Other parameters (including incident handling): 5 points

Automated Assessment and Reporting

SEBI has structured the ITRI framework to be entirely system-driven, ensuring automatic computation from IT systems or extracted data. This design minimizes manual intervention, making the assessment non-discretionary.

The standardized thresholds and scoring methodologies will also allow for consistent comparability across different MIIs.

Mandatory Reporting and Early Warnings

Market Infrastructure Institutions will be required to calculate their ITRI on a half-yearly basis. They must then compare these results with the preceding half-year’s performance.

Corrective measures identified from these assessments must be reported to their Standing Committee on Technology and their governing board. An Early Warning System is also mandated, designed to detect any deterioration in ITRI parameters that could potentially lead to performance issues or system slowness.

Implementation Milestones

MIIs are also tasked with building systems that provide continuous visibility into service delivery for market participants. These systems will be supported by consolidated dashboards to pinpoint deviations and anomalies.

The Industry Standards Forum of MIIs is set to finalize detailed sub-parameters and measurement criteria by November 30, 2026. The full ITRI framework, the early warning system, and real-time service monitoring are scheduled to be operational by February 28, 2027. The initial ITRI submission will cover the half-year concluding March 31, 2027.