Sebi bets on tech, AI to boost market surveillance

Securities and Exchange Board of India Chairman Tuhin Kanta Pandey on Wednesday said technology and artificial intelligence will play an expanding role in strengthening market surveillance, improving risk management and enhancing transparency across India’s capital markets.

Addressing global and domestic institutional investors at the Kotak Investor Conference, Pandey said that as India’s economy scales up, the character of market growth is set to change. The next phase, he noted, will be defined less by volumes and valuations and more by market quality, strong governance standards, disclosure discipline, liquidity depth and institutional strength.

He emphasised that technology, including AI-driven tools, will increasingly support surveillance systems and risk management frameworks. These tools, he said, will help the regulator ensure that markets function efficiently during stable phases and remain robust during periods of heightened volatility.

In an increasingly complex global environment marked by supply chain realignments, geopolitical tensions and rapid technological disruption, Pandey observed that growth is no longer only about delivering returns. Instead, it is also about building resilience, credibility and predictability for long-term investors.

Earlier this week, the Sebi chief said the regulator has begun deploying AI-based tools as part of its surveillance measures. These include monitoring market influencers and examining whether regulatory boundaries around investment advice are being breached, reinforcing oversight in a rapidly evolving digital ecosystem.