Sebi issues warning letters to NSDL over compliance and cyber alert lapses

The Securities and Exchange Board of India (Sebi) has issued two warning letters to the National Securities Depository Limited (NSDL) for alleged lapses in compliance.

The IPO-bound depository firm disclosed details of the two warning letters issued on 3 June. The first letter concerns the non-visibility of securities in investors’ demat accounts on the day of IPO allotment and going live with standardisation of file formats without conducting adequate testing.

The other warning letter relates to failure in properly tracking all cyber alerts, ensuring their resolution within stipulated timelines, maintaining correct and comprehensive details of all its assets, conducting comprehensive reviews of its critical assets and ensuring active monitoring of all its assets, among other issues.

The market regulator has asked the depository to exercise greater care in future, strengthen internal control systems and improve compliance standards to avoid recurrence of such instances. Failure to comply with Sebi guidelines may lead to stricter actions.

NSDL has clarified that there is no financial or operational impact resulting from the warning letters.

Read more