{
  "id": 20133117,
  "title": "SEBI to issue AI norms for capital markets, safeguard investor interests: Pandey",
  "url": "https://urgent.news/2026/11/15/sebi-to-issue-ai-norms-for-capital-markets-safeguard-investor",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-15T06:46:15.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/sebi-to-issue-ai-norms-for-capital-markets-safeguard-investor-interests-pandey/article71704258.ece"
  },
  "original_language": "en",
  "account": "SEBI chairman Tuhin Kanta Pandey announced the upcoming issuance of comprehensive guidelines for the responsible utilization of Artificial Intelligence (AI) within capital markets. Pandey stressed the importance of striking a balance between embracing technological innovation and safeguarding investor interests. The proposed guidelines aim to establish appropriate safeguards for AI implementation, encompassing disclosures, accountability measures for regulated entities, and a human-in-the-loop approach to ensure critical decisions are overseen by humans. In June 2025, SEBI released a consultation paper outlining guiding principles for responsible AI and Machine Learning (ML) applications/models in securities markets, with the goal of maximizing benefits and minimizing potential risks associated with integrating AI/ML-based applications in the markets. Pandey, speaking at SEBIs pavilion inauguration at the 45th India International Trade Fair (IITF) 2026, highlighted the regulator's continuous efforts to enhance its cybersecurity framework in response to escalating cyber threats targeting financial institutions, cryptocurrency platforms, and digital frauds involving social media influencers. The regulator introduced a structured incident response mechanism in May this year, aligning with the Financial Stability Board's FIRE reporting template. Pandey also mentioned that SEBI is currently conducting an inventory of cryptographic systems to identify potential vulnerabilities posed by quantum computing, anticipating heightened concerns around 2032-35. The chairman emphasized the need to complete preparations well in advance. SEBI has developed various supervisory tools, such as its Sudarshan tool, which is being showcased at international regulatory forums. The regulator is also working on bolstering its AI capabilities through international initiatives and supervisory toolkits. Pandey further explained that SEBI is reviewing the regulatory framework to ensure that AI use by market participants does not compromise investor protection, market safety, or integrity. Regarding startups and the listing framework, the chairman disclosed the formation of a working group to enhance the Innovators Growth Platform (IGP) to attract deep-tech and biotech companies, which typically require extended gestation periods before generating profits. Pandey acknowledged that the current platform has not garnered sufficient traction and plans to explore modifications to facilitate earlier public market access for such businesses while acknowledging the higher risks involved. However, he refrained from providing details on budget-related discussions.",
  "summary": "The regulator is also working on strengthening its AI capabilities through international initiatives and supervisory toolkits.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times - Top News",
        "title": "Sebi to issue AI usage guidelines for capital markets, focus on investor protection: Tuhin Kanta Pandey",
        "url": "https://urgent.news/2026/11/15/sebi-to-issue-ai-usage-guidelines-for-capital-markets-focus-on",
        "published": "2026-11-15T06:34:03.000Z"
      }
    ]
  },
  "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."
}