Continuous Automated Red Teaming (CART)

Why SEBI’s New Guidelines Make Automated Red Teaming Essential for Security Teams

The Securities and Exchange Board of India (SEBI) has mandated that Market Infrastructure Institutions (MIIs) and Qualified Regulated Entities (REs) adopt CART to continuously test and secure their systems. These guidelines, outlined in SEBI circular "SEBI/HO/ITD-1/ITD_CSC_EXT/P/CIR/2024/113" dated August 20, 2024, are not just about compliance—they’re about transforming how organizations approach cybersecurity.

Let’s break it down.

What SEBI Requires

Here’s a quick summary of the key requirements from SEBI’s circular:

• Red Teaming Exercises: Organizations must conduct red teaming exercises every six months using internal or external experts. The red team must operate independently from the function being tested.
• CART Deployment: A Continuous Automated Red Teaming solution must be implemented to provide ongoing security testing and visibility into attack surfaces.
• Governance and Reporting: Results of red teaming exercises must be reviewed by IT Committees and Governing Boards, with lessons learned shared with SEBI within three months. Progress on remediation must also be monitored.

These guidelines are designed to keep organizations one step ahead of attackers by ensuring continuous vigilance.

Why Traditional Methods Fall Short

Think about traditional penetration testing or manual red teaming. They’re like snapshots in time—useful but limited. Cyber threats evolve daily, and vulnerabilities can emerge right after a test is completed. Attackers don’t wait for your next scheduled assessment; they’re always probing for weaknesses. This is where CART comes in. Continuous Automated Red Teaming doesn’t just simulate attacks—it does so relentlessly, adapting to new threats in real-time. It’s like having a virtual scout that never sleeps, constantly searching for cracks in your defenses.

What Makes CART So Effective?

CART is more than just automation—it’s a smarter way to secure your systems. Here’s what makes it stand out:

• Real-Time Attack Simulation: CART mimics real-world attacks 24/7, helping you stay ahead of evolving threats.
• Comprehensive Asset Discovery: It identifies unknown assets that could become entry points for attackers.
• Faster Threat Response: Automated updates ensure CART adapts to new vulnerabilities and tactics as they emerge.
• Risk-Based Prioritization: By focusing on the most critical vulnerabilities, CART reduces noise and helps teams act where it matters most.

How SEBI’s Guidelines Impact Security Teams

For CISOs, CIOs, and security managers, SEBI’s guidelines represent both a challenge and an opportunity. The challenge? Adapting to a world where attackers are relentless.

The opportunity? Leveraging CART to not only comply with regulations but also build stronger defenses. Here’s why CART is essential:

• Proactive Defense: Instead of reacting to incidents, CART helps you identify vulnerabilities before they’re exploited.
• Improved Governance: By automating red teaming exercises, organizations can provide more robust reporting to IT Committees and Governing Boards.
• Cost Efficiency: Automated testing reduces the need for frequent manual assessments, freeing up resources for other priorities.

In short, SEBI’s guidelines push organizations to move from reactive to proactive security—a shift that’s long overdue.

Answering CISOs’ Key Questions

Let me address some common concerns I’ve heard from CISOs:

How can we find weaknesses in our security?

CART simulates attacks to uncover gaps in your defenses.

Are our security measures strong enough for advanced threats?

CART tests defenses against complex attacks, showing how well they work.

How can we respond to incidents faster?

CART spots delays in response plans, helping improve reaction times.

Are our risk strategies good enough?

CART reveals real risks, helping strengthen risk management plans.

Where could attackers get in?

CART finds hidden entry points hackers might exploit.

Are we meeting compliance rules?

CART tests policies to ensure they meet regulatory standards.

Is our threat detection strong?

CART challenges detection systems, improving their ability to spot threats.

How do we stay safe from new cyber threats?

CART keeps security updated to handle evolving risks.

How could a breach affect our business?

CART shows how attacks might disrupt operations and helps reduce impact.

Are we spending on the right cybersecurity tools?

CART pinpoints weak areas, guiding smarter investments in security tech.

The Road Ahead: Embracing Continuous Security

SEBI’s guidelines mark a turning point in how Indian organizations approach cybersecurity. By mandating CART and automated red teaming, they’re setting a new standard—one that prioritizes continuous vigilance over periodic checks. But compliance is just the beginning. The real value lies in building trust—with customers, stakeholders, and regulators—by demonstrating that your organization is committed to staying ahead of threats.

If you’re ready to take the next step toward continuous security, let’s talk about how we can help you implement CART seamlessly.

Together, we can turn these regulatory requirements into a strategic advantage.

Don’t wait for attackers to find your weaknesses—find them first!

Contact us today to learn how we can help you meet SEBI’s guidelines while strengthening your cybersecurity posture.

Let’s safeguard your critical systems together!