Cyber security audit will have to be done twice in a business year.
The cyber audit report has to be submitted under the signature of MD and CEO. The new rule will come into effect from 15 July 2022. SEBI will have to give all the information.
There is big news for mutual fund investors. Securities and Exchange Board of India (SEBI) has decided to change the rules of cyber security for mutual funds. The new framework will come into effect from July 15. SEBI has asset management companies ,AMC) to get cyber security audits done twice a year. Under the new rule, these audit reports will have to be submitted with the signature of CEO and MD. Apart from this, SEBI has talked about reforming the framework.
The audit report has to be submitted to the stock exchanges and depositories. Along with this, all the information related to business operations, services and data management will have to be identified. Clearly all the information will have to be given to SEBI. AMC has also been asked to keep all of its software, hardware and information tools related to it up to date. At the same time, get the volatility test done once in a year so that the interests of the investors can be taken care of.
The interests of investors will be protected
This exercise to secure cyber security will protect the interests of investors. In fact, due to the falling of information in the wrong hands, the risk of investors’ investments increases. Due to frequent audits, brokers will be able to understand the weak aspects of their system and also correct them in time.
These rules instead of FPI in May
SEBI has made some changes in the operational guidelines for Depository Participants and Foreign Portfolio Investors (FPIs) related to registration certificates of foreign investors and change in their names. According to the SEBI circular, the framework relating to certificate of registration of FPIs and change in their name has been modified.
Earlier in January, SEBI had notified rules for the creation of FPI registration numbers. After that the Finance Ministry amended the Common Application Form (CAF) in March. In order to implement the same, SEBI has made this amendment in the operating guidelines.
Let us tell you that in April, SEBI had issued a framework for measuring the level of risk in gold and gold-related investment instruments in which mutual funds invest money. Mutual fund companies invest in them only after seeing their risk score. The Risk-O-Meter has come into force with immediate effect for carrying out risk assessment in such commodities. SEBI said in a circular that investments in such commodities by mutual funds will be assigned a risk score. This will be based on the annual movement in the prices of these commodities, which will be calculated on a quarterly basis.