The Comtel data center hosts the servers and networking equipment for stock brokers. It offers services like rack space, power, bandwidth, and hardware rentals. Recently, big brokerage firms such as IIFL Securities, 5 Paisa, and Axis Securities fell victim to a ransomware attack that targeted Comtel. A report from Moneycontrol states that around 16 brokers were affected by this attack.
As a result, two out of the three major exchanges have blocked access for these brokers. They will need to obtain a certificate from certified auditors to regain entry, following the rules set by the Securities and Exchange Board of India (SEBI). According to the same report, brokerages often choose Comtel’s services to control costs. They can either run their own data centers or use shared services like those provided by Comtel. The ransomware attack occurred on the evening of December 9 and compromised the security of nearly 16 stock brokers and their clients.
Sources indicate that there are concerns about potential access to client details through the data center, which may have affected their order flow. Typically, order flow moves from a client to a broker, then to a data center, and finally to the exchanges. As a result of the ransomware attack, both the Multi Commodity Exchange (MCX) and the National Stock Exchange (NSE) have restricted access for most brokers, following SEBI regulations.
The report also mentioned that Axis Securities confirmed their systems are fully operational. According to the brokerage, all their systems are working well and unaffected by the attack, ensuring that client data and business operations are secure since their infrastructure operates independently. They emphasize their commitment to maintaining high security and compliance standards.
Brokers are required to obtain certifications from a Certified Information Systems Auditor (CISA), who must confirm that their systems are free from ransomware and functioning correctly. The exchanges allow brokers to operate only when they have this certification, as stated by the sources.
