SEBI to come up with rules to prevent broker terminal misuse, says chairman Pandey
"We are developing a framework to put in place safeguards to prevent misuse of trading terminals," Pandey said, addressing an event organised by ANMI here.
India's market regulator Sebi plans to introduce rules to prevent misuse of trading terminals provided by brokers, according to chairman Tuhin Kanta Pandey. Speaking at an event organized by the Association of Nationalized Multi-brand Intermediaries (ANMI), Pandey urged the market ecosystem to prioritize cybersecurity as a business necessity rather than an IT expense. Sebi is developing a framework to implement safeguards to prevent terminal misuse.
In addition, the regulator is considering a graded compliance system for brokers, reflecting their scale, client exposure, and reliance on technology. Sebi is also exploring the creation of an AI sandbox for testing new tools safely, with clear accountability, data controls, kill switches, and human oversight in place. The regulator is finalizing guidelines for the responsible use of AI, following a tiered approach with a focus on regulatory clarity.
Pandey announced that inspection portals will be consolidated into a single digital workflow, streamlining supervision and ensuring consistency. He emphasized that the next wave of retail broking will emerge from towns and villages, citing surveys indicating growing interest among Indian investors. Pandey called on the market ecosystem to ensure that investors invest wisely and maintain their investments over the long term.
Addressing brokers, Pandey urged them to view KYC as "Know Your Client's Needs," making it an ongoing conversation rather than a one-time form-filling exercise. He emphasized that a client who understands risk invests wisely and stays invested longer, benefiting the client, the broker, and the market.
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