{
  "id": 1895102,
  "title": "SEBI to issue AI guidelines with human oversight, data controls and kill switches",
  "url": "https://urgent.news/2026/08/19/sebi-to-issue-ai-guidelines-with-human-oversight-data-controls-and",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-19T08:03:16.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sebi-to-issue-ai-guidelines-with-human-oversight-data-controls-and-kill-switches/article71363840.ece"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Board of India (SEBI) is set to release guidelines for the responsible use of artificial intelligence (AI) and machine learning in India's capital markets. SEBI Chairman Tuhin Kanta Pandey announced this at the 23rd FICCI Capital Markets Conference 2026 in Mumbai. The proposed framework will emphasize human oversight, data controls, and 'kill-switch' mechanisms to address risks associated with AI and machine learning. These risks range from opacity and bias to cybersecurity and data protection concerns. Pandey emphasized that while AI can enhance market surveillance, risk assessment, fraud detection, and investor servicing, it also necessitates responsible usage to preserve market trust. The capital markets in India have witnessed significant growth, with equity issuances reaching Rs 4.5 lakh crore in FY25-26 and initial public offerings (IPOs) amounting to Rs 1.9 lakh crore. Pandey highlighted the importance of a tiered approach in the guidelines, focusing on accountability and governance controls. He also mentioned that the framework will require kill-switch and human-in-the-loop controls along with data controls. India's capital markets have expanded beyond equity issuance, with corporate bond issuances surpassing Rs 9 lakh crore in FY26 and mutual fund assets reaching Rs 86 lakh crore. SEBI is also considering wider investment channels, such as allowing client funds to invest in foreign securities and supporting global fund management activities from India. The regulator is reviewing existing frameworks to deepen cash markets and explore new avenues like ESG debt and corporate bond tokenisation. Pandey stated that SEBI's approach will involve simplifying regulations where possible, calibrating them to risk and sophistication, and maintaining strong safeguards. This new phase in India's capital markets aims to connect capital with emerging businesses, assets, and opportunities through AI, financialization, and new investment frontiers.",
  "summary": "The regulator is preparing safeguards as artificial intelligence becomes increasingly embedded in market surveillance, risk assessment, fraud detection and investor services.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}