SEBI to Leverage AI for Enhanced Market Surveillance and Transparency

SEBI Chairman Tuhin Kanta Pandey recently highlighted the transformative role of Artificial Intelligence (AI) in strengthening India’s capital markets during the “Kotak Investor Conference.” He emphasized that as the Indian economy scales up, the next phase of growth will be driven by market quality, corporate governance, and transparency rather than just trading volumes. To achieve this, the regulator is increasingly deploying AI-based tools to bolster surveillance systems, improve risk management, and identify misconduct—such as tracking “finfluencers” and monitoring real-time insider trading—to ensure the market remains a credible destination for long-term institutional capital.

The Chairman noted that today’s global business environment is increasingly complex due to geopolitical tensions, supply chain realignments, and rapid technological shifts. In this context, SEBI’s goal is to ensure that the market functions smoothly during prosperous times while remaining resilient during periods of high volatility. By prioritizing predictability and stability over mere returns, the regulator aims to build a robust financial ecosystem where technology empowers investors and strengthens the overall integrity of the Indian securities market.