SEBI Cloud Adoption Framework for the Regulated Entities

Prasad Puranik

FinTechs regulated by the  Securities and Exchange Board of India (SEBI) are mandated to adopt the SEBI cloud framework. Adopting SEBI’s cloud framework presents challenges such as ensuring data security and compliance with regulatory standards. Regulated entities face the task of selecting suitable cloud configurations and integrating existing systems seamlessly. Managing risks associated with cloud adoption, including data breaches and service disruptions, requires careful planning. Continuous monitoring and reporting to meet regulatory requirements are essential for successful implementation.

 

Here is a crisp view of the requirements of the SEBI cloud adoption framework:


  • Data Isolation and Encryption:
      • Ensure data isolation and encryption at all stages (at rest, in motion, in use) to maintain confidentiality, privacy, and integrity.
      • Retain ownership of all data, encryption keys, and logs residing in the cloud.
  • Compliance and Legal Boundaries:
      • Ensure data residency within India’s legal boundaries.
      • Maintain original data accessible within India for investors outside India’s incorporation.
  • Continuous Monitoring and Incident Management:
      • Implement continuous monitoring and incident management processes.
      • React promptly to incidents to minimize impact and ensure compliance with SEBI and government regulations.
  • Vulnerability Management 
      • Assess Cloud Service Provider’s (CSP) vulnerability management and patch management processes.
      • Conduct Vulnerability Assessment and Penetration Testing (VAPT) in alignment with SEBI’s requirements.
  • Secure Software Development:
      • Adopt secure software development practices for cloud-native development.
  • Secure User Management and Multi-Tenancy:
      • Ensure role-based access and least privilege principles for user management.
      • Verify multi-tenancy segregation controls and enforce additional security measures if needed.
  • Key Management and Endpoint Security:
      • Assess CSP’s key management processes and ensure secure endpoint security measures.
      • Implement encryption and cryptographic key management controls, including BYOK and BYOE approaches.
  • Network Security and Backup Solutions:
      • Implement micro-segmentation principles and network security controls.
      • Establish robust backup and recovery policies, ensuring logical segregation from production environments.
  • Skillset and Breach Notification:
    • Equip staff with the necessary knowledge and skills for secure cloud operations.
    • Require CSP to notify of any cybersecurity incidents promptly, following SEBI and government guidelines.

 

These regulations by SEBI may feel overwhelming but there is a solution to all these requirements within AWS. Also, whether you are meeting these requirements can also be verified by conducting Well-Architected Framework Reviews. Well-Architected Framework is a set of best practices identified by AWS and detailed reviews of the infrastructure against this framework can help organizations identify gaps and bridge them.

 

Comprinno is an AWS Advanced Consulting and Well-Architected Partner. We hold AWS Migration, Security and Resilience competencies and multiple service delivery validations making us a dependable AWS partner for ensuring a smooth transition and maintenance in AWS cloud.

 

Our cloud experts offer a comprehensive review of your regulated environment and offer assistance in adopting Cloud Adoption guidelines recommended by SEBI. We provide essential support on critical aspects such as common due diligence criteria and customer considerations. Furthermore, We provide assistance in adopting necessary measures to apply controls to your regulated environment.

 

Comprinno offers purpose built review and remediation designed to help impacted regulated entities to save significant time, money, and effort.

 

Below are some of the benefits of collaborating with Comprinno:

 

Efficient Cloud Governance: Prescriptive guidance on how AWS services and mechanisms may be used to meet and exceed SEBI’s expectations 

 

Cloud Control Mapping: Applicable controls from AWS’s SOC2 independent assurance reports which REs may rely on to meet and exceed SEBI’s expectations 

 

Security Assessment Report: A consolidated Security Assessment report which gives an aggregated view of the findings by resource type, status and severity.

 

Comprinno’s differentiated approach makes us stand out. Our AWS Cloud Governance Platform, Tevico, makes it easy to govern the cloud. 

 

Tevico’s custom gamification engine elevates engagement, boosting remediation rates in Well-Architected review. This transforms assessments into interactive, enjoyable experiences. Our solution provides comprehensive, precise risk assessments and enhanced auto-discovery for detecting a wide range of gaps. Facilitating seamless virtual team collaboration, the solution’s multi-user feature enhances productivity. With distinct phases, we’ve streamlined the process, ensuring a faster, more efficient path to compliance and optimization. 

 

Through a comprehensive approach encompassing people, processes, product and strategic partnerships, we help fintech companies to navigate regulatory challenges, enhance resilience, and embrace the future of secure and compliant financial technology services.

 

Do reach out to us if you require Fintech infrastructure solutioning.

About Author

Prasad Puranik, an accomplished Entrepreneur, Technologist, and Management Expert, brings over 24 years of invaluable experience in the Information Technology. As the Founder and CEO of Comprinno Technologies Pvt. Ltd., he continues to lead with a visionary approach, driving innovation and excellence in the ever-evolving tech landscape.

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