Kathmandu. The Securities Board of Nepal (SEBON) has implemented the Information Technology Policy effective from November 1. The Securities Board of Nepal (SEBON) has implemented the Information Technology Policy, 2083.
According to the Securities Board of Nepal, the policy will incorporate provisions related to emerging technologies with the objective of promoting the safe use of information technology, strengthening regulatory capacity, minimizing technology-based risks, promoting market fairness and transparency, enhancing investor confidence and developing regulatory capacity in line with international practices.
The main objective of this policy is to make the overall performance of the securities market and commodity exchange market result-oriented, effective, measurable and accountable through the development of information technology infrastructure. This policy of the Securities Board of Nepal (SEBON) has been made to classify the securities board, market operators (NEPSE and CDSC) at the first level regarding the security standards to be provided for the use of information technology in accordance with the nature and responsibilities of the securities market related bodies and market infrastructure institutions, and the third level (credit rating agencies and share registrars).
The policy has provisions for making the securities market and commodity market regulation, operation and investment dynamic, credible and digital transformation through the systematic and standardized use of information technology, facilitating the new and standard use of information technology in securities market and commodity exchange market and facilitating and encouraging emerging systems like financial technology through the emerging technology like regulatory sandbox.
The policy provides for the establishment and management of disaster recovery mechanisms in line with standard and international practice for the sustainable, reliable and safe use of market transactions, settlement and settlement mechanisms, central deposit system, warehouse-related records, business continuity plan and disaster recovery plan for important market infrastructure and entrepreneurs.
In addition, the annual examination of BCP and DRP has been made mandatory and a report on the same should be submitted to the Securities Board. It also provides for mandatory vendor due diligence and vendor risk management while purchasing technical equipment and services related to the securities market and commodity exchange and market regulation, and the IT Externalization Agreement provides for clear service level agreements, data protection obligations, regulatory audit rights and vendor exit strategies and other additional matters.
Likewise, market infrastructure institutions should establish security operation center or set up an accredited managed security service provider for round-the-clock cyber threat monitoring.
This policy is expected to increase the use of information technology in market regulation and market activities, enhance the effectiveness of the securities board in regulation through the use of supervisory technology and regulatory technology, make the overall market transparent and reliable, and provide an important basis for the effective and safe use of information technology by making the use of information technology in the stock market and commodity exchange market standard.
