SEBI Working on Technology Road Map for Stock Exchanges & MIIs

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