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SEBI issued a consultation paper on 11 September 2026 proposing that the IT and cybersecurity obligations of Market Infrastructure Institutions (MIIs) be extended to their subsidiary companies, with public comments invited until 2 October 2026.
MIIs are the three classes of institutions on which the securities market runs - stock exchanges (including commodity exchanges), clearing corporations and depositories.
A subsidiary would be covered if it performs activities directly supporting the parent MII's core functions, handles data managed by the MII, or shares IT infrastructure with the parent.
Covered subsidiaries would have to meet the same standards on cybersecurity, system audits, incident reporting, business continuity and disaster recovery, and technology governance.
The proposal builds on SEBI's Cybersecurity and Cyber Resilience Framework (CSCRF), which requires regulated entities to anticipate, withstand, contain and recover from cyber incidents.
An MII is an institution providing the plumbing of the securities market - the venue where trades are struck, the entity that guarantees and settles them, and the entity that holds securities in electronic form. All must be registered with SEBI.
Simple Analogy: The marketplace, the escrow agent and the record room of the stock market.
Constitutes SEBI as a statutory body with powers to protect investors and regulate and develop the securities market; SEBI received statutory status under it on 30 January 1992.
Governs stock exchanges and the trading of securities contracts, and underpins the recognition of exchanges and clearing corporations.
Provides for the holding and transfer of securities in dematerialised form and for the registration of depositories and depository participants.
Lays down ownership, governance and operating conditions for exchanges and clearing corporations, including their obligations as first-line regulators.
Statutory regulator of the securities market; every MII must be registered with it
Provide the trading platform and act as first-line regulators of their trading members and listed companies
Clear, settle and guarantee trades, standing between buyer and seller so that neither bears the other's default risk
Hold securities in electronic form and effect their transfer through depository participants
General Awareness > Financial regulators, capital market institutions, recent SEBI measures
GS Paper III > Indian economy - capital markets, regulatory bodies and financial-sector resilience
Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?
Answer: Only two
A SEBI-registered institution providing essential securities-market infrastructure - a stock exchange, a clearing corporation or a depository.
The role in which an MII supervises its own members - trading members, clearing members, depository participants and listed companies - before SEBI itself steps in.
SEBI's Cybersecurity and Cyber Resilience Framework, prescribing how regulated entities must anticipate, withstand, contain and recover from cyber incidents.