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India markets regulator penalises depository over 2022 malware attack
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MUMBAI, July 20 (Reuters) - India's markets regulator on Monday imposed a fine of 10 million rupees on Central Depository Services (India) Ltd (CDSL) for multiple cybersecurity and compliance failures linked to a malware attack that disrupted depository operations in November 2022.
• This server was the root cause of the malware attack.
By failing to secure this asset, the depository allowed cyber threats to gain access to its systems.
• The attack disrupted critical depository functions including settlement activities, corporate actions, margin pledges and inter-depository transfers, delaying settlements scheduled for 18 November 2022, SEBI said.
• SEBI noted that the malware attack was the foreseeable outcome of accumulated cyber-security lapses, including inadequate monitoring, weak password controls and failure to implement required cyber-security safeguards.