LockBit malware disrupts CDSL securities settlement and downstream financial operations

On November 18, 2022, Central Depository Services (India) detected a malware attack that rendered multiple servers and endpoint computers inaccessible. CDSL isolated affected infrastructure and disconnected its systems from other capital-market participants, disrupting securities settlement, corporate actions, inter-depository transfers, margin pledging and related transactional services. India's Securities and Exchange Board subsequently documented that settlement operations were disrupted for approximately 46 hours and inter-depository transfers for approximately 54.5 hours, with transactions scheduled for November 18 completed on November 20. The interruption propagated to brokerage operations and to CDSL Ventures, whose KYC activities were severely affected through shared technology infrastructure. Regulatory proceedings recorded that incident-response specialists identified LockBit 3.0 ransomware. This was a material disruption of a financial-market infrastructure provider and its dependent operational processes.