Description

BSE clarifies that Qualified Stockbrokers can maintain one IT committee instead of separate IT and Cybersecurity committees, with mandatory external cybersecurity expert.

Summary

BSE has clarified that Qualified Stockbrokers (QSBs) can constitute and maintain one Information Technology (IT) committee instead of maintaining two separate committees for IT and Cybersecurity functions. This IT committee must mandatorily include at least one external independent expert on cybersecurity and can handle functions of both IT and cybersecurity committees as specified in applicable circulars.

Key Points

  • QSBs can maintain one IT committee instead of separate IT and Cybersecurity committees
  • The unified IT committee must include at least one external independent cybersecurity expert
  • Committee can handle functions of both IT and cybersecurity as per applicable regulations
  • Clarification issued based on representations from QSBs and SEBI consultation
  • References SEBI circular on Enhanced Obligations for QSBs and updated Cybersecurity framework

Regulatory Changes

  • Simplification of committee structure for QSBs from two separate committees to one unified IT committee
  • Mandatory inclusion of external independent cybersecurity expert in the IT committee
  • Alignment with SEBI’s updated Cybersecurity and Cyber resilience framework (CSCRF)

Compliance Requirements

  • QSBs must constitute/maintain one IT committee with cybersecurity expertise
  • Committee must include at least one external independent expert on cybersecurity
  • IT committee must perform functions of both IT and cybersecurity committees as per applicable circulars
  • Compliance with SEBI’s Enhanced Obligations and Responsibilities framework

Important Dates

  • Notice Date: August 22, 2025
  • Implementation: As per timelines mandated by SEBI for CSCRF circular implementation
  • Reference to original SEBI circular dated February 6, 2023
  • Updated SEBI cybersecurity framework dated August 20, 2024

Impact Assessment

  • Reduces administrative burden on QSBs by allowing unified committee structure
  • Maintains cybersecurity oversight through mandatory external expert requirement
  • Provides operational flexibility while ensuring regulatory compliance
  • Affects all Qualified Stockbrokers in terms of governance structure
  • No immediate market trading impact but enhances regulatory clarity

Impact Justification

Provides regulatory clarity for QSBs on committee structure but doesn't change fundamental requirements