2 weeks ago
SEBI Streamlines Mutual Fund Registration, Launches Cybersecurity Portals
SEBI is changing how companies apply to start mutual funds.
Instead of using three forms, applicants will use one larger form.
The two-step approval process will not change.
The new form asks for details about the sponsor’s ownership, finances and experience.
It also asks for financial records from the previous five years.
SEBI has also launched two cybersecurity tools for the securities market.
One tool helps organisations report cyber incidents in a more consistent way.
The other helps them share cybersecurity information.
SEBI says this is important because cyberattacks can spread through connected companies, vendors and technology systems.
SEBI replaced three mutual fund application forms with one consolidated revised Form A.
The two-stage process of in-principle approval followed by final registration remains in place.
The revised form requires extensive information about sponsors, including ownership, finances and capital contributions.
SEBI launched a revamped Incident Reporting Portal aligned with the Financial Stability Board’s FIRE format.
The new Cyber Suraksha Portal will allow stakeholders to share cybersecurity information across the securities market.
- Who
- The Securities and Exchange Board of India (SEBI), led by Chairman Tuhin Kanta Pandey, announced the changes.
- What
- SEBI consolidated mutual fund registration applications and launched an Incident Reporting Portal and a Cyber Suraksha Portal.
- Where
- The reports were datelined New Delhi and Mumbai.
- When
- The mutual fund change was announced on Monday; the cybersecurity initiatives were announced at the SEBI Symposium on Cyber Defence.
- Why
- The registration change is intended to streamline applications, while the cybersecurity initiatives aim to improve cyber resilience, incident reporting and information sharing.
Key facts
- Mutual fund application change
- Forms A, C and D were consolidated into a revised Form A.
- Registration structure
- SEBI retained the existing two stages: in-principle approval and final registration.
- Sponsor records
- Applicants must provide audited balance sheets and profit-and-loss accounts for the preceding five financial years.
- Sponsor eligibility
- One eligibility route requires five years of financial-services experience, positive net worth and profitability in each of the preceding five years.
- Profit requirement
- The first sponsor eligibility route requires average annual net profit of at least Rs 10 crore over five years.
- Incident reporting
- The revamped SEBI Incident Reporting Portal is aligned with the Financial Stability Board’s Format for Incident Reporting Exchange (FIRE).
- Cybersecurity information sharing
- The Cyber Suraksha Portal will act as a central hub for cybersecurity-related information among stakeholders.
Quotes
Tuhin Kanta Pandey
Chairman of the Securities and Exchange Board of India (SEBI)
“Cyber threats do not respect organisational boundaries. They do not respect regulatory boundaries. And they certainly do not respect national borders.”
thehansindia.com
Sources
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