IFSCA, the International Financial Services Centres Authority, regulates financial services and financial institutions in India. In a circular published on 16th November 2022 IFSCA has announced new business continuity and disaster recovery requirements for India-based market infrastructure institutions (MII).
The circular states that IFSCA has adopted the Principles for Financial Market Infrastructures (PFMIs) laid down by CPMI-IOSCO.
Principle 17 of PFMI sets out the requirement for India's MIIs to have business continuity management in place, which 'should aim for timely recovery of operations and fulfilment of ... obligations, including in the event of a wide-scale or major disruption'.
The circular sets out a framework for business continuity planning and disaster recovery site (DRS )requirements. This includes the need for MIIs to set up a DRS 'preferably ... in different seismic zones'. Additionally, a 'minimum distance of 500 kilometres shall be ensured between the Primary Data Centre (PDC) and the DRS so that both DRS and PDC are not affected by the same disaster.'
Read the circular 'Guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) for Market Infrastructure Institutions (MIIs)'.
