Source: BS
Context:
With capital markets becoming more complex and technology-driven, the market regulator is stepping up efforts to future-proof India’s market infrastructure institutions (MIIs).
Key Development
- Securities and Exchange Board of India (SEBI) is planning to constitute a working group to develop a technology road map for Market Infrastructure Institutions (MIIs).
- The announcement was made by Tuhin Kanta Pandey, Chairman, SEBI.
About the Technology Road Map
- Applicable to MIIs such as:
- Stock exchanges
- Clearing corporations
- Depositories
- The road map will outline:
- A 5-year technology vision
- A 10-year technology vision
- Objective:
- Provide a structured framework for the securities market ecosystem
- Ensure MIIs keep pace with rapidly evolving markets
Focus Areas Highlighted by SEBI
- Technology investment
- Risk management
- Cyber resilience
- Emphasis on:
- Quality and sophistication of markets, not just scale
- Investor protection alongside innovation
AI-Driven Regulatory Initiatives
SEBI has already deployed or is developing several artificial intelligence (AI) tools:
- AI-powered market surveillance system
- Detects fraud and market manipulation
- AI-driven advertisement viewer
- Monitors advertisements by asset management companies
- Disclosure monitoring tools
- Track compliance by listed entities
- AI-driven inspection tool (under development)
- Strengthens risk-based supervision
- Analyses cyber audit reports
- Identifies control gaps
- Classifies regulated entities based on risk exposure
Sensex at 40: Broader Perspective
- Speaking at the 40th anniversary of the Sensex, Pandey noted:
- The Sensex has mirrored India’s economic transformation over four decades.
- Its changing composition reflects:
- Rise of private enterprises
- Shift from traditional industries to services, finance, and technology
- Deeper integration with global capital markets
