India’s capital markets regulator, Securities and Exchange Board of India (Sebi), is preparing to roll out an AI-powered tool aimed at assessing the cybersecurity preparedness of institutions under its supervision. The initiative seeks to strengthen risk-based monitoring and ensure the integrity and reliability of the financial markets.
Speaking at an event held at the BSE, Sebi Chairman Tushar Kant Pandey said the regulator is also forming a working group to design a long-term technology roadmap for Market Infrastructure Institutions (MIIs).
What the AI Tool Will Do
According to Pandey, the AI system under development will—
- Analyze cybersecurity audit reports
- Identify control gaps in systems and processes
- Classify institutions based on their risk exposure
The tool is expected to help Sebi detect potential threats proactively and take corrective measures in a timely manner.
5-Year and 10-Year Technology Vision
The working group’s roadmap will cover—
- 5-year short-term strategies
- 10-year long-term strategies
This strategic vision aims to ensure that the regulatory framework keeps pace with the growing digital demands of the market.
“Innovation Must Build Trust”
Pandey urged exchanges and MIIs to continue investing in—
- Technology
- Risk management
- Cyber resilience
In his words—
“We must ensure that innovation strengthens market transparency and integrity, not weaken it.”
Why This Step Is Crucial
As the number of investors and their market participation rises, the financial ecosystem faces—
- Increasingly complex cyber threats
- Greater dependence on data and trading systems
Sebi believes that sustainable markets are built on trust, evolving regulations, and robust systems, rather than mere short-term market fluctuations.
