What is the common examiner trap about Economy in UPSC exams?

Examiners may confuse ITRI with other indices (e.g., CRISIL, SENSEX, NIFTY) or swap weights (e.g., stating Security has 10% instead of 20%). They may also mix up the regulator — ITRI is SEBI's initiative, not RBI's. Another trap: confusing 'Business Continuity' weight (10%) with 'Availability' (20%).

What should UPSC aspirants remember about Economy for Prelims?

1. Target this Data: ITRI has 9 parameters; Availability and Security each weighted 20%; Business Continuity 10%; Scalability 5%. 2. Target this Nodal Body: SEBI (Securities and Exchange Board of India) — the regulator introducing the ITRI. 3. Target this Legal Point: 2015 SEBI circular declaring MIIs as 'systemically important' forms the foundation for the ITRI.

EconomyBanking_Regulation

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News 8 of 26

SEBI Introduces IT Resilience Index (ITRI) for MIIs: 9-Parameter Scorecard to Quantify Tech Risk

Q: Which regulatory body is responsible for introducing the IT Resilience Index (ITRI) for Market Infrastructure Institutions in India?

Securities and Exchange Board of India (SEBI), The ITRI has been introduced by SEBI, the capital markets regulator in India. It is designed to measure the resilience of critical IT systems at MIIs such as stock exchanges, clearing corporations, and depositories. The Reserve Bank of India (RBI) regulates banking and monetary policy, while IRDAI regulates insurance.

Q: Consider the following statements regarding SEBI's IT Resilience Index (ITRI): 1. The ITRI is a compliance-based framework that checks whether Market Infrastructure Institutions (MIIs) are following existing IT rules. 2. Availability and Security have been assigned the highest weight of 20% each in the ITRI. 3. The ITRI includes an Early Warning System (EWS) to detect deterioration in its parameters. Which of the statements given above is/are correct?

Both 2 and 3, Statement 1 is incorrect because the ITRI shifts from a pure compliance-based mode to a quantitative risk-monitoring framework. Statement 2 is correct: Availability and Security each have a 20% weight, the highest among all parameters. Statement 3 is correct: MIIs are required to develop an Early Warning System to detect deterioration in ITRI parameters and take remedial measures.

Q: According to the article, what is the weight assigned to the 'Scalability' parameter in SEBI's IT Resilience Index (ITRI)?

5%, Scalability has been assigned a 5% weight in the ITRI. This reflects SEBI's view that Indian markets are growing rapidly but do not pose an immediate stability risk. The highest weights are 20% each for Availability and Security, while Business Continuity & Reliability has 10%.

Q: What is the primary objective of SEBI's IT Resilience Index (ITRI)?

To measure the robustness of critical IT systems at MIIs using a quantitative risk-monitoring framework, The ITRI aims to gauge whether IT systems supporting trading, clearing, settlement, and securities holding can handle operational shocks, cyber threats, and spikes in market activity. It shifts from a compliance-based approach to a quantitative risk-monitoring framework, providing a measurable resilience barometer. Options A and D are not objectives of the ITRI; option C is incorrect as the ITRI does not replace all regulations but adds a new measurement layer.

Economy Science & TechCORE

Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains HighStatic GK Link

25 Aug 2026

~2 min

Source: The Hindu

Key Data:Availability weight 20%Security weight 20%Business Continuity weight 10%Scalability weight 5%9 parameters2015 SEBI circular

Bodies:SEBI

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~2 min · Quick mode

What This Article Covers

1.SEBI introduces ITRI, a quantitative resilience index for Market Infrastructure Institutions (MIIs) — stock exchanges, clearing corporations, depositories.

2.The index is built on 9 weighted parameters; Availability and Security get highest weight (20% each), followed by Business Continuity (10%) and Scalability (5%).

3.This is among the first global attempts by a regulator to create a measurable tech resilience barometer, similar in concept to capital adequacy norms for banks.

The Big Picture

Prelims · HighMains · High

SEBI has launched the IT Resilience Index (ITRI), a first-of-its-kind quantitative scorecard to measure the robustness of critical IT systems at stock exchanges, clearing corporations, and depositories. This shifts regulation from compliance-checking to risk-monitoring, with 9 weighted parameters — Availability and Security each carrying the highest weight of 20%. For exam aspirants, this is a high-priority topic: it links to regulatory bodies (SEBI), financial market infrastructure, and emerging tech risks (cyber, AI, cloud).

Exam Lens

Quick Exam Facts From News

RegulatorSEBI (Securities and Exchange Board of India)

New InitiativeIT Resilience Index (ITRI)

Target EntitiesMarket Infrastructure Institutions (MIIs) — Stock Exchanges, Clearing Corporations, Depositories

No. of Parameters9

Highest Weight ParametersAvailability (20%), Security (20%)

Foundation Year2015 (SEBI circular declaring MIIs as systemically important)

Additional MechanismEarly Warning System (EWS) to detect deterioration in ITRI parameters

1-Minute Revision

›Regulator: SEBI (Securities and Exchange Board of India)
›New Initiative: IT Resilience Index (ITRI)
›Target this Data: ITRI has 9 parameters; Availability and Security each weighted 20%; Business Continuity 10%; Scalability 5%.
›Target this Nodal Body: SEBI (Securities and Exchange Board of India) — the regulator introducing the ITRI.
›Target this Legal Point: 2015 SEBI circular declaring MIIs as 'systemically important' forms the foundation for the ITRI.

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News Snapshot

📊

ITRI: A Quantitative Resilience Barometer

SEBI's ITRI is a first-of-its-kind global regulatory index that measures the technology resilience of MIIs on 9 weighted parameters, moving beyond routine compliance.

⚖️

Highest Weight: Availability & Security (20% each)

These two parameters are deemed the first line of defence; their failure can immediately disrupt market functioning, hence they carry the most weight in the index.

🔄

Shift from Compliance to Risk Monitoring

The ITRI represents a paradigm shift: instead of just checking if rules are followed, SEBI will now quantitatively assess and monitor operational risk in real time via an Early Warning System.

Detailed Analysis & Strategic Depth

Context / Background

India's capital markets have become heavily technology-dependent, with millions of retail investors trading via online platforms, high-frequency algorithmic trading, and faster settlement cycles. Even a few minutes of disruption can affect billions of rupees in trades. In 2015, SEBI declared MIIs as 'systemically important', mandating a robust cybersecurity framework. The ITRI builds on this foundation, aiming to quantify resilience rather than just ensure compliance.

Core Analysis & Implications

The ITRI uses 9 parameters with a risk-prioritisation weighting: Availability and Security (20% each) are the most critical, as their failure can immediately halt market functioning. Business Continuity & Reliability (10%) reflects a shift from preventing failures to absorbing shocks and recovering quickly. Scalability (5%) acknowledges rapid market growth but no immediate stability risk. The weights are a starting framework and will be refined using actual outage data and cyber incidents. An Early Warning System (EWS) will detect deterioration in these parameters, enabling proactive remediation.

Global Comparison & Distinctiveness

Most global regulators follow a principle-based operational resilience model. The UK's FCA/PRA sets disruption tolerances; the EU's DORA is a regulatory rulebook; the US embeds resilience into oversight; Singapore's MAS has strong tech risk guidelines. SEBI's ITRI is distinctive because it converts resilience into a single, measurable numeric index — similar to capital adequacy ratios for banks. This makes it a global test case for future-ready financial architecture.

Key Implementation Challenges

The biggest challenge is the pace of technological change — risks evolve faster than regulatory frameworks. Other challenges include: (a) creating a common index for entities with different tech architectures (exchanges vs. clearing corps vs. depositories), (b) unpredictability of cybersecurity threats, and (c) the need for substantial investments in automated monitoring and redundant infrastructure.

Future Outlook / Way Forward

SEBI has constituted a working group for a long-term technology roadmap for MIIs covering AI, cloud computing, distributed ledger technology, and quantum-safe systems. The real test of ITRI will be whether a high score translates into faster recovery during an actual cyberattack or system outage. If successful, it could become a global template for safeguarding the digital foundations of finance.

Key Facts at a Glance

RegulatorSEBI (Securities and Exchange Board of India)

New InitiativeIT Resilience Index (ITRI)

Target EntitiesMarket Infrastructure Institutions (MIIs) — Stock Exchanges, Clearing Corporations, Depositories

No. of Parameters9

Highest Weight ParametersAvailability (20%), Security (20%)

Foundation Year2015 (SEBI circular declaring MIIs as systemically important)

Additional MechanismEarly Warning System (EWS) to detect deterioration in ITRI parameters

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, Banking, State PSC

Which regulatory body is responsible for introducing the IT Resilience Index (ITRI) for Market Infrastructure Institutions in India?

Q2Statement-basedHardUPSC, SSC

Consider the following statements regarding SEBI's IT Resilience Index (ITRI):

1. The ITRI is a compliance-based framework that checks whether Market Infrastructure Institutions (MIIs) are following existing IT rules.

2. Availability and Security have been assigned the highest weight of 20% each in the ITRI.

3. The ITRI includes an Early Warning System (EWS) to detect deterioration in its parameters.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, Banking, SSC

According to the article, what is the weight assigned to the 'Scalability' parameter in SEBI's IT Resilience Index (ITRI)?

Q4Application/ImpactMediumUPSC, Banking, SSC

What is the primary objective of SEBI's IT Resilience Index (ITRI)?

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SEBI Introduces IT Resilience Index (ITRI) for MIIs: 9-Parameter Scorecard to Quantify Tech Risk

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

ITRI: A Quantitative Resilience Barometer

Highest Weight: Availability & Security (20% each)

Shift from Compliance to Risk Monitoring

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

Global Comparison & Distinctiveness

Key Implementation Challenges

Future Outlook / Way Forward

Prelims Flashpoints

Key Facts at a Glance