SEBI developing AI tool to enhance cyber-safety of regulated entities
What's the story
The Securities and Exchange Board of India (SEBI) is developing an artificial intelligence (AI) tool to assess the cyber safety preparedness of regulated entities. Tuhin Kanta Pandey, Chairman of SEBI, announced this at the 40th anniversary event of Sensex at BSE. He said that the AI-driven inspection tool is being developed to strengthen risk-based supervision among these entities.
Tool functionality
AI tool to analyze cyber audit reports
The AI tool will analyze cyber audit reports, identify control gaps, and classify entities according to their risk exposure. This development is part of SEBI's larger effort to strengthen its regulatory architecture amid a growing and diversifying investor base. Pandey stressed on the importance of innovation in maintaining market integrity while urging exchanges and other market infrastructure institutions (MIIs) to invest in technology, risk management, and cyber resilience.
Strategic vision
SEBI's technology roadmap for market infrastructure institutions
Along with the AI tool, SEBI is also working on a technology roadmap for MIIs. This plan will provide these institutions with a structured strategic technology vision for the securities market ecosystem over five and 10 years. Pandey emphasized that enduring markets are built on trustworthy institutions, regulations that evolve with markets, and systems that continuously adapt and upgrade.