SEBI’s ITRI — a global test for India’s future-ready financial architecture | Explained
SEBI has introduced the IT Resilience Index (ITRI) to quantitatively measure the robustness of IT systems within market infrastructure institutions. This initiative aims to shift from compliance-based monitoring to a risk-based framework to protect India's financial markets from technological disruptions.
Why it matters
It represents a significant regulatory evolution in financial technology, setting a global precedent for ensuring the stability of digital capital markets.
The story so far: Market regulator Securities and Exchange Board of India (SEBI) has introduced a technology health scorecard for market infrastructure institutions (MIIs) to measure the robustness of their critical IT systems rather than merely checking routine compliance.
SEBI’s IT Resilience Index (ITRI) appears to be among the first attempts globally by a regulator to design a quantitative resilience barometer, as measurable as capital adequacy for banks, for MIIs such as stock exchanges, clearing corporations and depositories.
The move to assess MII vulnerabilities comes in view of the rising technological dependence of Indian capital markets, where even a few minutes of disruption can affect millions of investors and billions of rupees in trades.
The ITRI will gauge whether the IT systems supporting trading, clearing, settlement and securities holding are capable of handling operational shocks, cyber threats, technical failures and sudden spikes in market activity.
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