Sebi Chairman Highlights Tech's Role and Emerging Risks
The Securities and Exchange Board of India (Sebi) is set to significantly strengthen its governance and risk management frameworks. This proactive measure comes amid a global environment of rapid technological advancement and growing concerns over new Artificial Intelligence (AI) models and their potential cyber security impact on India's capital markets.
Sebi Chairman Tuhin Kanta Pandey emphasized technology's crucial role, stating it enables the regulator's work from advanced analytics and digital forensics to real-time monitoring systems. He noted that AI-enabled platforms are already enhancing both supervision and efficiency within the regulatory body.
"We will strengthen governance and risk management frameworks and capabilities. It is also important to recognize that markets are not built by regulators alone. Industry participants must move beyond compliance to a deeper commitment to fairness, integrity and innovation," said Sebi Chairman Tuhin Kanta Pandey.
Pandey reminded market intermediaries, who often serve as the initial point of trust for investors, of their responsibility. He also stressed the importance of investors themselves remaining aware and responsible in their market participation.
Resilient Markets and Future Regulatory Demands
Speaking at Sebi's 38th foundation day, Pandey acknowledged the unpredictable global environment but highlighted the remarkable resilience of Indian markets. He attributed this strength to years of institutional development, sound regulation, and robust frameworks.
India's capital markets have seen substantial growth, now boasting over 5,900 listed companies and more than 140 million unique investors. Over the past decade, market capitalization has grown at approximately 15 percent compounded annually, while mutual fund assets have expanded by over 20 percent each year.
Looking ahead, Pandey indicated that the future of regulation will demand new skills, sophisticated data analytics, advanced technology, and interdisciplinary thinking. Sebi has already taken steps to enhance its internal governance, implementing recommendations from a high-level committee on conflict of interest and disclosures.
Continued Investment in Technology and Simplification
Sebi plans to continue its investment in technology-led supervision and foster collaborations to drive innovations that support market development. The ultimate goal is to ensure capital formation contributes to faster economic growth.
Additionally, Pandey stated, "We will accelerate our drive to simplify and rationalize regulations for ease of doing business by all participants in a capital market." Finance Minister Nirmala Sitharaman, also present at the event, urged both Sebi and regulated entities to maintain exceptional vigilance against increasing cyber security risks.