Sebi chief: Action plan on quantum readiness in regulated entities, Pg19.

Key Highlights:

• SEBI has developed an action plan for quantum readiness in its regulated ecosystem, announced by Chairman Tuhin Kanta Pandey on October 8, 2025.
• The plan addresses post-quantum cryptographic issues and includes capacity building initiatives.
• Quantum computing threatens to break traditional encryption, necessitating the adoption of post-quantum cryptography (PQC) or quantum key distribution (QKD).
• Cybersecurity threats arising from technological advancements can cause systemic disruptions in interconnected systems.

Detailed Insights:

• Traditional cryptography, used for password generation, is vulnerable to being broken by quantum computing, requiring a shift to quantum-resistant cybersecurity.
• SEBI's action plan aims to identify and replace vulnerable password systems with post-quantum cryptography (PQC) across its regulated entities.
• Cybersecurity risks pose a significant threat to financial markets, where a single breach can have cascading effects due to interconnected systems.
• The move towards quantum readiness is essential to protect sensitive financial data and maintain the integrity of the securities market against future technological threats.

Key Concepts Involved:

• Cryptography: The technique of protecting information through the use of codes, ensuring only authorized parties can access it.
• Quantum Computing: A type of computing that uses the principles of quantum mechanics to solve complex problems faster than classical computers.
• Post-Quantum Cryptography (PQC): Cryptographic systems that are secure against attacks by both classical and quantum computers.