New Delhi, November 15, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) will soon issue detailed guidelines governing the responsible use of Artificial Intelligence (AI) in capital markets, with a focus on investor protection, accountability and human supervision, Chairman Tuhin Kanta Pandey has said.
The proposed framework will prescribe safeguards for the adoption of AI by market participants, including mandatory disclosures, clear accountability for regulated entities and a “human-in-the-loop” approach to ensure that critical decisions remain subject to human oversight.
Speaking at the inauguration of SEBI’s pavilion at the 45th India International Trade Fair (IITF) 2026, organised by the India Trade Promotion Organisation, Pandey said technological innovation must not come at the cost of market integrity, investor safety or financial stability.
In June 2025, SEBI had issued a consultation paper outlining guiding principles for the responsible use of AI and Machine Learning (ML) applications and models in the securities market. The proposed framework seeks to harness the benefits of emerging technologies while addressing the risks associated with their deployment.
Pandey also highlighted growing cybersecurity threats to the financial sector, including attacks targeting financial institutions and cryptocurrency platforms, as well as digital frauds involving social media influencers. He said SEBI was continuously strengthening its cybersecurity framework to respond to these emerging challenges.
In May 2026, the regulator introduced a structured incident-response mechanism aligned with the Financial Stability Board’s FIRE reporting template to improve the reporting and management of cybersecurity incidents.
On the risks posed by quantum computing, Pandey said SEBI was preparing an inventory of cryptographic systems and identifying their deployment across the sector to assess potential vulnerabilities. He noted that the threat could become more pronounced between 2032 and 2035, making advance preparations essential.
The SEBI chief also highlighted the regulator’s use of AI in market supervision, citing its “Sudarshan” tool, which is being showcased at international regulatory forums.
Separately, Pandey said SEBI had constituted a working group to examine ways to make the Innovators Growth Platform (IGP) more attractive to startups, particularly those operating in deep technology and biotechnology.
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