Business · Companies · 9 hrs ago
Sebi fines CDSL ₹1 crore for compliance lapses
India’s markets regulator Sebi fined depository CDSL ₹1 crore for multiple compliance lapses.
The findings followed an inspection of CDSL’s operations during the 2023-24 financial year.
Sebi said CDSL failed to explain rejected share-pledge requests to the depository participants representing both sides.
It also found problems with handling unpaid securities, preventing unauthorised data transfers and running disaster recovery drills.
The regulator also cited late security patches and incomplete vulnerability testing, which did not cover all domains and external applications.
CDSL must pay the fine within 45 days, or Sebi may begin recovery proceedings.
In July, Sebi imposed another ₹1 crore fine on CDSL over cybersecurity lapses linked to a malware attack that disrupted its systems in November 2022.
India’s markets regulator Sebi fined Central Depository Services (India) Ltd (CDSL) ₹1 crore for multiple compliance lapses.
The violations occurred during FY2023-24 and were identified after an inspection of CDSL’s operations.
Sebi cited shortcomings involving pledge-rejection notices, client unpaid securities accounts, data protection and disaster recovery.
It also found that CDSL did not patch identified vulnerabilities on time and that its VAPT exercise did not cover all domains and external applications.
CDSL must pay the penalty within 45 days, or recovery proceedings may be initiated.
- Who
- Sebi fined Central Depository Services (India) Ltd (CDSL).
- What
- Sebi imposed a ₹1 crore penalty for multiple compliance lapses.
- When
- The order was reported on Friday, October 30, 2026. The violations related to FY2023-24.
- Where
- Not stated.
- Why
- Sebi said CDSL breached regulatory requirements, including those on pledge requests, CUSA procedures, data security, disaster recovery and vulnerability testing.
This story does not have two clearly opposing sides.
Sebi said the compliance violations occurred during this financial year.
Sebi issued its final observations on IPO papers for four companies, according to an update cited in the article.
Sebi imposed the ₹1 crore penalty on CDSL.
- Penalty
- ₹1 crore
- Payment deadline
- 45 days
- Regulator
- Securities and Exchange Board of India (Sebi)
- Inspection period
- FY2023-24
- Pledge requests
- CDSL failed to communicate rejection reasons to the depository participants of both the pledgor and pledgee
What people are saying
Noticee has been found to have committed multiple compliance lapses in the discharge of its depository functions.