Key Takeaways
- • SEBI Chairman Tuhin Kanta Pandey said on Wednesday that the regulator is implementing the International Organization of Securities Commissions' (IOSCO) supervisory toolkit for artificial intelligence to strengthen risk management and build an agile AI governance framework.
- • SEBI is exploring a securities market-specific AI model that would be built and governed domestically, framed as digital public infrastructure.
- • Pandey said AI tools could improve services, risk assessment and supervision, but require reliable data, effective model oversight and clear accountability for decisions.
- • SEBI is reviewing compliance requirements for foreign investors and will issue a consultation paper on aligning them with global standards, even as India has eased market access and digital onboarding for overseas investors.
Summary
India's markets regulator, the Securities and Exchange Board of India (SEBI), is working to implement a global supervisory toolkit for artificial intelligence and is considering building a domestically governed AI model dedicated to the securities market, according to Chairman Tuhin Kanta Pandey, who spoke at a summit in Mumbai on Wednesday.
SEBI is implementing the International Organization of Securities Commissions' supervisory toolkit to strengthen risk management and develop an agile governance framework for the use of AI. Pandey also said the regulator is exploring a securities market-specific AI model that could be built and governed domestically as a form of digital public infrastructure. He stated that AI-enabled tools could improve services, risk assessment and supervision, while their use depends on reliable data, effective oversight of models and clear accountability for decisions.
On foreign investor oversight, Pandey said SEBI is reviewing compliance requirements and will issue a consultation paper seeking views on aligning them with global standards. He acknowledged that India has streamlined market access, eased digital onboarding and simplified procedures for overseas investors, but said some domestic compliance requirements remain more onerous than those in other major jurisdictions. Quoting him directly, he said, "India will need both domestic and foreign capital to support its growth ambitions ... international participation can widen the pool of capital and bring expertise."
Reuters noted that it had reported in August that SEBI planned to relax disclosure requirements for certain offshore funds deemed high-risk. Those rules, introduced during SEBI's scrutiny of offshore investors linked to the Adani Group, had triggered complaints and legal challenges.
SEBI is implementing the International Organization of Securities Commissions' supervisory toolkit to strengthen risk management and develop an agile governance framework for the use of AI. Pandey also said the regulator is exploring a securities market-specific AI model that could be built and governed domestically as a form of digital public infrastructure. He stated that AI-enabled tools could improve services, risk assessment and supervision, while their use depends on reliable data, effective oversight of models and clear accountability for decisions.
On foreign investor oversight, Pandey said SEBI is reviewing compliance requirements and will issue a consultation paper seeking views on aligning them with global standards. He acknowledged that India has streamlined market access, eased digital onboarding and simplified procedures for overseas investors, but said some domestic compliance requirements remain more onerous than those in other major jurisdictions. Quoting him directly, he said, "India will need both domestic and foreign capital to support its growth ambitions ... international participation can widen the pool of capital and bring expertise."
Reuters noted that it had reported in August that SEBI planned to relax disclosure requirements for certain offshore funds deemed high-risk. Those rules, introduced during SEBI's scrutiny of offshore investors linked to the Adani Group, had triggered complaints and legal challenges.
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