HDFC Securities Pays Rs65 Lakh to Settle SEBI Case on Failure in Critical IT Systems, DR and Cybersecurity Policies

HDFC Securities Pays ₹65 Lakh to Settle SEBI’s IT and Cybersecurity Violations.

Expert Analysis :

• Settlement Payment: HDFC Securities paid Rs65 lakh to SEBI for multiple IT, disaster recovery, and cybersecurity violations.

• Regulatory Breaches: SEBI’s 8 August 2024 notice cited HDFC Securities for failing to generate 70% capacity alerts and missing LAMA on 47/52 servers.

• Compliance Failures: HDFC Securities missed quarterly disaster recovery drills, had weak cybersecurity policies, and categorized critical and non-critical assets incompletely.

• Settlement Proposal: HDFC Securities filed a settlement application on 8 August 2024, and SEBI’s IC recommended a Rs65 lakh settlement, later communicated to the company.

• Approval & Payment: HDFC Securities’ revised terms matched IC recommendations; HPAC was reviewed on 24 Dec 2024, WTMs were approved on 5 Feb 2025, and payment was made on 4 March 2025.

• Future Liability: SEBI reserves the right to take further action if HDFC Securities fails in disclosures, undertakings, or settlement terms.