SEBI Proposes IT Resilience Index with 9 Parameters and Weighted Framework for MIIs

The Securities and Exchange Board of India has put forward a detailed proposal to introduce an IT Resilience Index aimed at evaluating and strengthening the technology infrastructure of key market institutions.  

The framework is designed to bring a structured and comparable approach to assessing system robustness across exchanges, depositories, and clearing corporations. 

Structure of the IT Resilience Index 

The proposed index will be based on 9 parameters, each assigned a specific weight to ensure uniform assessment. Among these, system availability and security have been given the highest importance, with each carrying a weight of 20%. 

Other critical areas such as integrity, governance, reliability, monitoring, business continuity, and modularity and flexibility have each been assigned 10% weight. The remaining 10% is distributed across factors like scalability and incident handling. 

The index will evaluate both core systems and supporting infrastructure that contribute to overall operations. To maintain consistency, the calculation process is intended to be largely automated, relying on system-generated data rather than manual inputs. This approach is expected to ensure objectivity and eliminate discretionary variations in scoring. 

Implementation, Reporting and Oversight 

An industry-level forum constituted for market infrastructure institutions will define the detailed methodology, including sub-parameters, scoring models and baseline thresholds. This standardisation exercise is expected to be completed within 3 months of the final framework being issued. 

Institutions will be required to compute the index on a half-yearly basis. The calculation must be completed within 60 days from the end of each half-year, followed by submission to the regulator within 90 days.  

These submissions will include comparative analysis across 2 periods, along with observations from internal oversight bodies and details of corrective actions taken or planned. 

The framework is expected to be implemented within 6 months of finalisation. A beta version has already been deployed, and the first official reporting cycle is scheduled for the half-year ending September 30, 2026. 

The regulator has opened the proposal for public feedback, with comments invited until April 15, 2026. 

Read More: RBI Developing AI-Led Payment Platforms to Handle Rising Digital Transactions! 

Conclusion 

The proposed IT Resilience Index introduces a data-driven and standardised method to monitor the strength of technology systems across market institutions, combining defined parameters, automated scoring and periodic reporting to enhance overall system reliability. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.