Mumbai: The Securities and Exchange Board of India (SEBI) is working on a comprehensive framework to govern the use of artificial intelligence (AI) in the capital markets ecosystem, its chief Tuhin Kanta Pandey said on Friday."AI will be an important part of our regulatory agenda. AI can improve surveillance, risk assessment, fraud detection, and investor servicing. But it also brings risks relating to opacity, bias, data protection, cybersecurity, and accountability. SEBI will issue detailed guidelines on the responsible use of AI in capital markets," Pandey said. He was speaking at the ET NOW Markets Summit 2026.Also read: Sebi plans to ease KYC rules for FPIs, offer more clarity to global capitalHe added that IOSCO's (International Organization of Securities Commissions) AI supervisory toolkit would be suitably integrated into Sebi's AI strategy for regulated entities. Pandey said the next phase would be guided by the recommendations of an expert panel constituted to draw the five year and 10- year roadmap for market infrastructure institutions.
Sebi to issue guidelines on responsible use of AI in capital markets, chief Pandey says
India's market regulator, SEBI, is creating rules for artificial intelligence in financial markets. SEBI chief Tuhin Kanta Pandey announced this plan. AI can help with surveillance and fraud detection. However, it also poses risks like bias and data protection issues. SEBI will issue guidelines for responsible AI use. The regulator will also consider international recommendations.
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