Scalable and Efficient Group Key Management Scheme (SEGKMS) is a key management system for multicast networks that results in security of the data exchanges. It is cost efficient with respect to the distribution of the keys between network elements. It is a systematic approach for the key management in a multicast network to achieve a great advantage in terms of scalability, forward secrecy, backward secrecy, key independence, etc. The number of subgroups is constant and hence the group key remains same throughout. Hence, GK is generated and distributed only once. SEGKMS uses proactive secret sharing scheme which is proven to be efficient for distribution of the keys.