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SEBI fines CDSL 1 crore rupees over a series of compliance lapses

India's market regulator SEBI fined depository CDSL 1 crore rupees over pledge handling, disaster recovery and cybersecurity shortcomings.

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what happened

India's securities regulator SEBI on Friday imposed a penalty of 1 crore rupees on Central Depository Services (India) Ltd (CDSL) for several compliance failures. The lapses include not explaining to depository participants why pledge requests were rejected and weaknesses in disaster recovery drills. Moody's reported the news.

According to SEBI's 102-page order, the violations occurred in fiscal 2023-24 and were found after an inspection. The regulator also cited non-compliance with procedures for unpaid securities accounts, insufficient safeguards against unauthorised data transfers, delayed patching of vulnerabilities and an incomplete penetration test. CDSL has 45 days to pay, after which recovery proceedings may begin.

why it matters

The fine is modest, but the regulator stressed the systemic importance of depositories to India's market. CDSL was also fined in July for cybersecurity lapses linked to a malware attack in November 2022, which keeps attention on the reliability of its infrastructure.

tags

instruments

CDSL sharesIndian stock market

sources

  1. SEBI imposes ₹1 crore fine on CDSL for multiple compliance lapses — Moody's, 31 October 2026 at 05:31 UTC

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