3 min readMumbaiJan 2, 2026 09:55 PM IST
First published on: Jan 2, 2026 at 09:55 PM IST
With investor participation widening and markets becoming more technology-driven, the Securities and Exchange Board of India (SEBI) is sharpening its focus on upgrading its technological framework to enable more effective and proactive supervision, SEBI Chairman Tuhin Kanta Pandey said on Thursday.
Speaking at an event to mark the 40th anniversary of the BSE Sensex, Pandey said the regulator was strengthening both its technological and regulatory architecture to safeguard market integrity amid a rapidly diversifying investor base. “As participation widens and the investor base becomes diverse, our focus has also been on strengthening technological and regulatory architecture to uphold integrity,” he said.
Pandey outlined the regulator’s key priorities, which include continuous improvement in corporate governance standards, promotion of sustainable finance and long-term value creation, encouragement of innovation with investor protection at the core, and responsible use of information and data in market operations and supervision.
The AI challenge
The changing landscape of the market, especially with the integration of AI, brings complexities alongside efficiencies, the chairman said. “The next frontier thus lies in anticipating risks before they surface,” he said, underscoring the need for forward-looking regulation.
To this end, SEBI has strengthened its regulatory framework while also deploying AI-driven tools and new cyber-security measures. Pandey highlighted Sudarshan, an AI-based model that identifies fraudsters impersonating investment advisers and research analysts on social media platforms to mislead investors. Another AI-powered system, R(AI)DAR (Regulatory AI-driven Advertising Reviewer), monitors and analyses advertisements issued by asset management companies to flag potential mis-selling and regulatory violations.
The regulator has also introduced a sentiment analysis system for corporate announcements, which helps identify disclosures that qualify as “material” and enables timely surveillance alerts. Pandey said SEBI is currently developing an AI-driven inspection tool for cyber health checks, which will analyse cyber audit reports, identify gaps and classify market entities based on their risk exposure.
Improved tech
In addition to these measures, SEBI has been working to improve its broader technology architecture. He pointed to the introduction of instant verification of UPI IDs and bank accounts as a step aimed at preventing cyber fraud.
These measures come after the market regulator has taken steps to make market infrastructure institutions (MIIs) such as exchanges, depositories, and clearing corporations more accountable in a recent circular. “To ensure security, we have mandated external independent evaluation of MIIs and their statutory committees every three years, alongside internal evaluations,” Pandey said.
BSE Managing Director and CEO Sundararaman Ramamurthy also addressed the gathering, where he highlighted how the Sensex has seen a 13 per cent compounded annual growth rate since its inception in 1986, compared to the 9-10 per cent of other major global stock indices such as Hong Kong’s Hang Seng and the US’ Dow Jones Industrial Average.
The Securities and Exchange Board of India (SEBI) is sharpening its focus on upgrading its technological framework. (File Photo) 
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