BSE arm Indian Clearing Corporation got fined for regulatory lapses
In a significant regulatory move, the Securities and Exchange Board of India (Sebi) slapped a penalty of Rs. 5.05 crore on the Indian Clearing Corporation Ltd. (ICCL), a subsidiary of BSE Ltd, following an inspection that revealed several instances of non-compliance concerning the clearing corporation’s practices and systems.
SEBI inspection also revealed that ICCL had not fully complied with Sebi’s cyber security framework, particularly failing to close audit observations in a timely manner. Certain audit findings remained unresolved for over six months, violating the stipulated time-bound closure requirement. The inspection, which covered the period from December 2022 to July 2023, was conducted to ensure that ICCL adhered to SEBI rules, regulations, and circulars, including those related to cyber security, asset management, and disaster recovery. The review, conducted in line with Sebi’s mandate, identified multiple violations of the Sebi Act, 1992, and the Securities Contracts (Regulation) Act, 1956 (SCRA), as well as the Securities Contracts (Regulation) (Stock Exchange and Clearing Corporations) Regulations, 2018 (SECC).
