Circular No. SEBI/HO/MRD/TPD/P/CIR/2023/65; dated: 05.05.2023
SEBI has put in place a comprehensive testing framework for the Information Technology (IT) systems of the Market Infrastructure Institutions (MIIs). The framework will manage the IT systems of MIIs throughout their lifecycle and shall assist in performing thorough risk assessments before deploying any IT systems in the production/live environment.
As per the said framework, all MIIs are required to carry out thorough testing, validation and documentation whenever new systems are developed or changes are made to existing systems before deployment in the production/live environment.
Further, MIIs are required to set up a comprehensive methodology for system testing, functional testing, and application security testing which must be approved by the Standing Committee on Technology (SCOT) of the respective MIIs.
The scope of testing includes covering business logic, system function, security controls and system performance under load and stress conditions. Moreover, any dependency on the existing systems shall be properly tested.
Testing should be carried out in a separate environment that replicates/mirrors the production environment in order to minimize any disruption. All issues identified from testing, including system defects or software bugs, should be properly tracked and remediated immediately.
All MIIs are directed to establish policies and procedures on the use of third-party systems/applications/software codes to ensure these systems are subject to review and testing before they are integrated with the systems of the MIIs.
Also, MIIs are advised to submit the testing framework of all their IT systems after approval of the Standing Committee on Technology (SCOT) within 30 days from the date of this circular. The circular shall be effective immediately.
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