Domestic stock exchanges BSE and NSE restrict internet access from foreign locations, according to insider reports
In a surprising twist, India's two leading stock exchanges, the National Stock Exchange (NSE) and the BSE Ltd, have barred overseas users from accessing their websites due to escalating cyber threats. Three insider sources have confirmed this surprising move.
Despite this restriction, overseas investors can continue trading on Indian markets uninterrupted. The decision, made after a joint meeting of exchanges, was primarily after discussing potential cyber risks. One of the sources, who asked to remain anonymous due to the sensitive nature of the matter, explained the decision. Another spokesperson for BSE, when reached out by Reuters, also echoed concern over cyber threats but did not specify any recent attacks.
The unrest between nuclear neighbors India and Pakistan brings the larger context into play. However, the sources did not establish a direct link between the cyber threats and the recent political developments.
Lower Opening for Indian Benchmarks as Tensions Persist
Given the tense environment, some "precautionary" steps have been taken by the exchanges, another source revealed. Indian markets remain functional smoothly, according to the same source.
The BSE spokesperson clarified their vigilant approach, stating, "BSE, being a critical market infrastructure institution (MII), proactively monitors risks at both domestic and international levels for potential cyber threats." In response to cyber traffic, they restrict access to protect users and systems, allowing it on a case-by-case basis.
The NSE spokesperson was yet to respond to Reuters' queries.
Protecting Against Cyber Threats
Continuous Monitoring: As a critical market institution, BSE continuously keeps an eye on risks at both domestic and international levels to detect potential cyber threats. This constant monitoring helps in identifying and mitigating risks that may affect their systems.
Case-by-Case Access: To ensure the protection, access to the websites is granted selectively. This selective approach allows for the management of risks while still accommodating necessary access for legitimate users.
Alleged Cyberattacks: The current situation has seen a rise in alleged cyberattacks, reportedly originating from Pakistan, targeting Indian defense and strategic organizations. The exchange's measures are viewed as a protective step to safeguard against potential vulnerabilities during this sensitive period.
[1] Joint Meeting Discussion of Potential Cyber Threats[2] No Impact on Overseas Investors' Trading Ability[3] Sensitive Environment: Precautionary Steps by Exchanges[4] Rise in Alleged Cyberattacks[5] Protective Measures to Safeguard Against Vulnerabilities
- The risk of cyber threats has led to the National Stock Exchange (NSE) and BSE Ltd, India's leading stock exchanges, to restrict access to their websites for foreign users, citing the need for heightened precautionary measures in the current sensitive environment.
- Despite the restriction on access, overseas investors can still trade on Indian markets without interruption, as the decision was primarily driven by discussions on potential cyber risks.
- The surge in alleged cyberattacks, reportedly originating from Pakistan, targeting Indian defense and strategic organizations, has led to the increase in protective measures by critical market institutions like BSE, aimed at safeguarding against potential vulnerabilities during this period.
