Why CDSL Has Been Fined ₹10 Lakh By SEBI
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The Securities and Exchange Board of India (SEBI) has imposed a financial penalty on Central Depository Services Limited (CDSL) for a cybersecurity breach that occurred in 2022.

What Happened: CDSL has been instructed to pay the penalty to the Investor Protection and Education Fund. The penalty, amounting to ₹10 lakh was announced late on Friday. The penalty has been levied due to CDSL’s failure to comply with SEBI’s cybersecurity policies and guidelines. The company said that there would be no financial impact on the company due to this payment.

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Last week, CDSL had settled adjudication proceedings with SEBI over alleged violations, paying around ₹1.30 crore without admitting or denying the findings of facts and conclusions of law.

The company also got SEBI’s approval for the appointment of Nehal Vora as the managing director and CEO. Last month, ICICI Securities downgraded the stock’s rating from “hold” to “reduce” due to concerns about peak cycle multiples and the risk of lower earnings growth.

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