SEBI in the process of constituting a working group to develop a tech roadmap for MIIs: SEBI Chair

SEBI, IEPFA to organise Niveshak Shivir in Bengaluru on January 3

• SEBI to create a group for a long-term market tech roadmap
• AI tools SEBI Sudarshan and RADAR boost market supervision and protection
• Sensex marks 40 years, showcasing India's economic growth and market evolution

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Marking 40 years of the BSE Sensex, SEBI Chairman Tuhin Kanta Pandey on Friday said India’s capital markets will now be defined by  “quality and sophistication” even as scale and participation continue to grow. He announced that the regulator will constitute a working group to prepare a long-term technology roadmap for market infrastructure institutions (MIIs).

Pandey announced that SEBI will constitute a working group to develop a technology roadmap for MIIs. “This roadmap will provide a structured five-year and ten-year strategic technology vision for the securities market ecosystem,” he said.

“As markets evolve, emerging technologies, particularly artificial intelligence, bring new efficiencies but also fresh complexities,” Pandey cautioned. “The next frontier lies in anticipating risks before they surface.”

Emphasising the centrality of trust, the SEBI chairman said, “No market can sustain growth without trust. And trust in turn rests on appropriate regulation, transparency and effective enforcement.”

He said India’s regulatory framework has matured from fragmented oversight to a comprehensive system focused on “market integrity, investor protection and systemic stability,” even as participation widens and the investor base becomes more diverse.

Market infrastructure institutions, Pandey said, are the “foundational pillars of the securities ecosystem” and their governance “must therefore be unimpeachable.” To this end, SEBI has mandated external independent performance evaluations of MIIs and their statutory committees once every three years, in addition to internal evaluations.

He also pointed to new governance guidelines, noting that “the Chief Technology Officer and the Chief Information Security Officer will report to the Executive Director of critical operations, who will report to the governing board on a quarterly basis.”

AI-led supervision and cyber resilience

Pandey said SEBI is increasingly relying on technology to enhance supervision and investor protection. “At SEBI, we are continuously upgrading our technological capabilities to enhance market integrity, supervision and investor protection,” he said.

Among the tools highlighted were SEBI Sudarshan, an AI-powered system to detect unauthorised digital activity and social-media frauds, and SEBI RADAR, an AI-driven advertisement reviewer to monitor mutual fund advertisements for code violations. He also cited sentiment analysis tools for corporate announcements and an AI-driven cyber inspection framework under development.

The SEBI chairman said future market development would be defined “not just by scale, but by quality and sophistication,” with priorities including stronger corporate governance, sustainable finance, innovation with investor protection at the centre and responsible use of technology.

“Enduring markets are not built on momentary highs or cycles of optimism. They are built on institutions that inspire trust and systems that continuously adapt and upgrade,” Pandey said.

Sensex at 40

Pandey noted that the Sensex today stands not merely as an index, but as a testament to India’s capital market journey. He added that it is a journey “shaped by continuity, reform, institutional strength and a forward-looking embrace of technology.”

Addressing market veterans, institutional representatives and BSE officials, the SEBI chief said the milestone offered an opportunity to reflect not merely on market movements or headline numbers, but on the institutional journey of India’s securities market and its role in supporting economic growth, enterprise and household participation.

Over four decades, he said, the Sensex has “stood the test of time as a robust market indicator mirroring India’s economic transformation,” with its changing composition reflecting liberalisation, the rise of private enterprise and deeper global linkages.

Highlighting continuity among constituents, Pandey observed, “It is remarkable to note that a few companies that were part of the Sensex at its inception continue to be constituents even today.” Their presence, he said, reflected “sustained attention to governance, competitiveness and long-term value creation.”