Reimagine digital trust in capital markets, published by KPMG in India, in collaboration with CDSL (Central Depository Services (India) Limited), presents key insights on digital led growth and evolution capital markets are witnessing and strategies for sustaining and enhancing digital trust.

Powered by a growing economy, thriving company valuations and technological advancements, capital markets have witnessed tremendous growth. Further, the adoption of digital technologies by capital market participants has enabled an exponential increase in retail investor participation. However, the significant adoption of transformative digital technologies has also exposed market participants as well as investors to newer and higher risks. We are witnessing growing menace of cyber-attacks emanating from organized crime syndicates and alleged nation state actors. The market participants, taking cognizance of these risks, are responding by enhancing their capabilities.

However, the sharp rise in volume and variety of risks require market participants to reimagine risk management capabilities and practices. This is crucial for not only sustaining and enhancing investor confidence but also their wealth. In our view, a comprehensive strategy for reinforcing the currency of digital trust comprises pillars of security and reliability, accountability and oversight, transparency and responsible use. The cutting-edge capabilities and practices need to be built across national, capital market, organisational and societal levels, keeping in mind all the pillars of digital trust, particularly cyber security.

The report discusses about digital public and foundational capabilities that India has built in-house and also continued government of India initiative for building आत्मनिर्भर भारत (Aatma Nirbhar Bharat, self-reliant India). And highlights that leveraging resources and investing in-house cyber security capabilities to build cybersecure आत्मनिर्भर भारत shall support laying a strong foundation of trust and contribute to vibrant digital capital markets.

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