The next phase of market development would be defined not just by scale, but by quality and sophistication, Securities & Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said on Friday.
Tuhin Kanta Pandey
| Photo Credit:
FRANCIS MASCARENHAS
“Our priorities include continued strengthening of corporate governance standards, promoting sustainable finance and long-term value creation, encouraging innovation while keeping investor protection at the centre, and responsible use of technology and data in market operations and supervision,” he said outlining the regulator’s plans.
“As markets evolve emerging technologies—particularly artificial intelligence—along with deeper global linkages, bring new efficiencies but also fresh complexities. The next frontier therefore lies in anticipating risks before they surface,” he emphasised while speaking at a function to celebrate 40 years of the Sensex.
Towards responsible use of AI Technology, he said SEBI was continuously upgrading its technological capabilities to enhance market integrity, supervision and investor protection.
It has internally developed several technology-driven tools to support this objective, he said.
He said SEBI Sudarshan for surveillance has been developed for check unauthorised digital activity.
“This AI-powered market surveillance system detects fraudsters who pose as registered IA/RA1 to mislead the public on social media platforms,” the Chairman said.
He said SEBI R(AI)DAR, a Regulatory AI-driven advertisement reviewer has been deployed to monitor and analyse the AMC advertisements for any potential violation of code of conduct of advertisement issues by SEBI.
He said AI-driven Inspection tool was currently under development to strengthen risk-based supervision of regulated entities. This tool will analyse cyber audit reports, identify control gaps, and classify entities based on their risk exposure—thereby enhancing supervisory effectiveness.
He said alongside supervisory tools, it was equally important to strengthen technological architecture of the securities market.
A Cybersecurity and Cyber Resilience Framework (CSCRF) has been put in place to enhance cyber preparedness across regulated entities and ensure resilience against evolving cyber threats, he said.
He said SEBI was in the process of constituting a Working Group to develop a Technology Roadmap for Market Infrastructure Institutions (MIIs).
This roadmap will provide MIIs a structured 5-years (short-term) and a 10-years (long-term) strategic technology vision for the securities market ecosystem,” he pointed out.
Amid rapidly evolving market ecosystem, exchanges, other MIIs and market institutions must continue to invest in technology, risk management and cyber resilience – ensuring that innovation strengthens – not weakens – market integrity, he emphasised.
“As we celebrate 40 years of the Sensex, we are reminded that enduring markets are not built on momentary highs or cycles of optimism. They are built on institutions that inspire trust, regulation that evolves with markets, and systems that continuously adapt and upgrade,” the Chairman said.
The Sensex today stands not merely as an index, but as a testament to India’s capital market journey—one shaped by continuity, reform, institutional strength, he said.
Published – January 02, 2026 08:02 pm IST
