Sebi's Quantum Readiness Action Plan Unveiled
The Securities and Exchange Board of India (Sebi) is taking significant steps to enhance cybersecurity in the financial sector. Chairman Tuhin Kanta Pandey recently announced the preparation of an action plan focused on quantum readiness during his address at the Global Fintech Fest 2025. This initiative aims to address the challenges posed by quantum computing on traditional cryptographic methods.
As quantum computing gains traction, conventional encryption methods face the risk of being compromised. Traditional cryptography, which relies on algorithms to secure sensitive data, will be vulnerable in the quantum era. Therefore, the need for post-quantum cryptography (PQC) has never been more pressing. Sebi's action plan includes capacity-building initiatives to ensure that the financial ecosystem can transition smoothly and securely to quantum-safe practices.
Pandey emphasized that every technological advancement brings with it a new set of risks. Cybersecurity threats can disrupt entire systems, and even a single data breach can have widespread consequences. As market participants increasingly rely on third-party services and cloud platforms, new risks emerge that may fall outside traditional regulatory frameworks. This necessitates a proactive approach to cybersecurity.
This year, the Ministry of Electronics and Information Technology (MeitY), alongside the Indian Computer Emergency Response Team (CERT-In) and cybersecurity firm SISA, released a whitepaper titled 'Transitioning to Quantum Cyber Readiness.' This document serves as a guide for organizations across various sectors, helping them prepare for the move towards quantum readiness.
Sebi has been implementing measures including regulatory frameworks, continuous monitoring, and standard operating procedures for handling cybersecurity incidents. The comprehensive cybersecurity and cyber resilience framework aims to ensure that regulated entities are equipped to withstand, respond to, and recover from cyber threats effectively.
However, Pandey cautioned that building resilience is not a one-time task but a continuous journey of learning and adapting. The responsibility of ensuring robust cybersecurity lies not only with regulators like Sebi but is a shared duty among market infrastructure institutions, intermediaries, fintech innovators, and all participants in the ecosystem. Together, they must work to enhance the security and resilience of India's financial landscape against emerging threats.
