Always-on SEBI cyber framework evidence for small brokers and advisers
TL;DR Auditmoor runs continuous checks on a small SEBI-regulated firm's network, endpoints and cloud accounts, then turns the results into the evidence its cyber auditor asks for. Small stock brokers, investment advisers and portfolio managers pay a yearly subscription instead of scrambling before every audit.
SEBI's Cybersecurity and Cyber Resilience Framework (CSCRF), issued on 20 August 2024, applies to almost every regulated entity in the securities market[1]. After two extensions the last deadline for most of them was 31 August 2025, and the circular names stock brokers, depository participants, investment advisers, research analysts and portfolio managers among those covered[2]. The framework expects a board-approved policy, periodic vulnerability testing, monitoring, incident response and audits[3].
Big brokers have security teams. A 15-person broking firm or a two-person advisory practice doesn't, and 43% of Indian SMBs put the lack of a dedicated security team among their top three problems[4]. Most end up with a spreadsheet and a once-a-year panic.
What it does, in regulatory terms: compliance monitoring and evidence preparation only. Auditmoor does not certify compliance, an empanelled auditor still signs off. It helps firms meet SEBI's CSCRF and CERT-In's 2022 directions[5].
A light agent and read-only cloud connectors run scheduled checks - exposed ports, missing patches, multi-factor login, backup status, log retention and clock sync to approved time servers. Each finding maps to the CSCRF control it affects. Fixes come as short instructions a non-specialist can follow, and every passed check is time-stamped as evidence. Before an audit the firm exports a pack sorted by control, with screenshots, logs and policy documents.
I kept the seed's idea of continuous network assessment and narrowed its vague "compliance challenges" to one regulator with a fresh, dated mandate. Scanning builds on open-source cloud scanners[6].
The compliance officer or the promoter of a small broker, adviser or portfolio manager pays, usually from a compliance budget that already covers auditors and VAPT vendors. Nobody publishes a price list for CSCRF audits, so price discovery is part of validation. I'd test ₹1.5–4 lakh a year per firm (our estimate), against what an outside consultant charges to put the evidence together by hand.
CSCRF went from circular to enforced obligation in 2025, after extensions to 30 June and then 31 August[2][3]. Audit cycles now repeat, so firms face the same evidence grind every period. Exchanges forward SEBI circulars to every member[2], which also tells a new vendor exactly who has to comply.
There's no public figure for spending on CSCRF compliance. The narrowest firm number is the scope itself - the June 2025 circular is addressed to all stock brokers, depository participants, investment advisers, research analysts, portfolio managers, AIFs and merchant bankers[2]. SEBI's count of registered intermediaries wasn't fetched in this research, so pull it from SEBI's own statistics before you size the business.
Several Indian security firms[3][7] are marketing CSCRF services, mostly as consulting or testing engagements. Global compliance-automation software goes after ISO 27001 and SOC 2 and not SEBI's control list.
The gap is a self-serve product priced for the small and self-certification tiers, where a full consulting engagement costs too much.
| Difficulty | Moderate (42/100) |
| Starting capital | ₹60 L–1.2 Cr |
| Time to launch | 6–9 months |
The checks are standard. The hard part is mapping them to SEBI's control list accurately, keeping that map current as circulars change and earning the trust of compliance officers who fear a wrong answer far more than a slow one. Sales cycles follow audit calendars, so expect lumpy months.
No licence is needed to sell compliance software. You just mustn't claim to certify anyone or give investment advice.
Building this outside India? The categories above usually have a local equivalent, so check with your own regulator.
Don't trust AI to say a firm is compliant. Only the empanelled auditor can sign that off, and a confident wrong answer here becomes a regulatory problem.
Want to work out the AI layer for Auditmoor? Talk to Yash →
I think this is a focused, sensible bet for a founder who has worked in broker compliance or IT audit and can read SEBI circulars closely. It doesn't suit a pure security engineer without that grounding. First, prove that two empanelled auditors will accept Auditmoor's evidence pack without rework.
Plan for roughly ₹60 L–1.2 Cr, mostly for the product team, control mapping work and selling to small brokers and advisers.
No. Don't claim to certify compliance, follow CERT-In's rules as a service provider and handle evidence data under the DPDP Act.
Yes, most markets have cyber rules for brokers and advisers. You'd rebuild the control mapping for your own regulator's framework.
The free Auditmoor validation kit has the line-by-line capital breakdown, the effort scoring, the SEBI and CERT-In checklist, a 14-day validation sprint with pass/fail targets, a 90-day launch plan, 10 interview questions for compliance officers and auditors, and 5 assumptions to test. Download the kit →
Thinking about building Auditmoor or something close to it? The make-or-break work is getting auditors to trust your evidence and keeping the control map in step with SEBI, and I'm happy to think that through with you. If you need a hand, you know where to find me. Talk to Yash →
For illustration only. Names are fictional and ideas hypothetical; sourced facts are real but may be out of date. Nothing here is legal, financial or professional advice, and Yash Khatri is not personally liable for any use of it. Read the full disclaimer.