CDSL share price falls after Sebi fines ₹1 crore over 2022 malware attack

CDSL share price traded lower on Tuesday, after the markets regulator Sebi imposed a penalty of ₹1 crore on the company for cybersecurity lapses. CDSL shares fell as much as 0.94% to ₹1,372.10 apiece on the NSE.

The Sebi order against Central Depository Services (India) Ltd (CDSL) stems from a malware attack on November 18, 2022, which disrupted several critical systems at the company.

However, the regulator disposed of adjudication proceedings against the former Chief Information Security Officer Rajesh Nadkarni and former Chief Technology Officer Amit Mahajan without imposing any monetary penalty, holding that the alleged lapses could not be attributed to them individually.

SEBI has imposed a penalty of ₹90 lakh under the Sebi Act and ₹10 lakh under the Depositories Act on CDSL for failing to comply with various cybersecurity and cyber resilience requirements. The regulator directed CDSL to pay the penalty within 45 days.

In its 88-page order, Sebi said CDSL failed to classify its internet-facing Active Directory Federation Services (ADFS) server as a critical asset, excluded it from vulnerability assessment and penetration testing (VAPT), and did not implement basic cybersecurity controls despite regulatory requirements.

The regulator noted that it had flagged these deficiencies to CDSL in August 2022, but the depository did not address them and instead relied on an earlier, deficient VAPT exercise.

Sebi also observed that attackers had gained access to CDSL’s servers as early as November 2021, nearly a year before the malware attack was detected in November 2022.

According to the order, the malware attack infected 135 of 547 servers and 177 of 506 desktops and laptops, disrupting key depository operations, including settlement, pay-in/pay-out and pledge-related activities, on November 18, 2022.

Meanwhile, CSDL said there was no material impact on financials, operation or other activities of the company, except the payment of the proposed penalty amount.

CDSL share price has risen 1% in three months, but has fallen 5% on a year-to-date (YTD) basis. The stock has declined over 20% in one year, but has delivered multibagger returns of 132% over the past three years.

At 10:30 AM, CSDL share price was trading 0.61% lower at ₹1,376.70 apiece on the NSE.

Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.

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