SEBI Mulls India‑Specific AI Model for Market Supervision

Summary

Sebi chairman Tuhin Kanta Pandey told the Business Standard BFSI Insight Summit 2026 that the regulator is studying a home‑grown artificial‑intelligence model for the securities market. The aim is to create a domestically governed digital public‑infrastructure tool that can aid supervision, risk assessment and cyber‑resilience.

Key Points

• Purpose – An AI model tailored to Indian market data could help spot trading patterns, flag anomalies and support faster decision‑making.
• Governance – Sebi plans to embed the model within an IOSCO‑aligned AI supervisory toolkit and develop a dedicated AI‑governance framework.
• Technology Roadmap – A short‑ and long‑term roadmap for market‑infrastructure institutions (MIIs) is being drafted to outline required upgrades.
• Cybersecurity & Training – The regulator will extend its IT‑security framework to MII subsidiaries and launch a joint training programme with RRU and NISM for engineers managing security‑operations centres.
• Cautions – Pandey warned that reliable data, clear accountability and robust oversight are essential before wider AI adoption.

Practical Implications

• For Brokers & Exchanges – May need to share clean, standardized data with Sebi’s AI platform and adapt internal risk models.
• For Investors – Potentially faster detection of market abuse, though no guarantee of immediate changes to trading experience.
• Verification – The announcement can be cross‑checked on Sebi’s official website and the Business Standard coverage of the BFSI Insight Summit.

Outlook

The proposal remains exploratory; no timeline for deployment was given. Sebi’s next steps will involve stakeholder consultations, pilot testing and finalising the governance charter.

--- *Source: Business Standard, “SEBI exploring India‑specific AI model for securities market oversight”, 28 Oct 2026.*