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<h1>SEBI Issues New Framework for Cloud Adoption: Security, Compliance, and Data Localization Emphasized for Regulated Entities.</h1> The circular outlines a framework for SEBI-regulated entities to adopt cloud services, emphasizing the need for security, compliance, and risk management. It applies to stock exchanges, clearing corporations, depositories, brokers, and other entities. The framework mandates using MeitY-empaneled cloud service providers and requires data localization within India. It sets principles for governance, risk management, data ownership, security controls, and vendor management. Entities must ensure clear delineation of responsibilities with cloud providers and comply with SEBI regulations. A transition period is provided for current cloud users to comply with the framework, with regular reporting and audits required.