Market regulator the Securities and Exchange Board of India (SEBI) today asked depositories to formulate information technology strategy panels at board level with a view to strengthening the IT governance framework of their systems.

SEBI issued guidelines to strengthen the IT governance framework of depositories following recommendations of a committee, which was formed by the regulator in December 2012 to review the country's depository system. Depositories have the mandate to help firms convert their physical shares or securities into dematerialised or demat form and thereafter maintain those shares, and also supervise proper conversion and reconciliation of their total share capital by the companies.

SEBI said in a circular that depositories will now have to formulate an IT strategy committee at board level to provide insight and advice in various areas that include developments in IT from a business perspective and competitive aspects of IT investments. 

Also, alignment of IT with business direction, availability of IT resources to meet strategic objectives and alignment of the IT architecture to the organisation needs are among other areas. 
The regulator said that depositories will have to formulate an executive level IT steering committee to assist the IT strategy committee in implementation of the framework.