SEBI using AI for investigations: Official

SEBI uses AI: The Securities and Exchange Board of India is using Artificial Intelligence (AI) to conduct its investigations, according to the regulator’s  Whole Time Member Kamlesh Chandra Varshney.

The official was in Delhi for the 13th international convention of the Association of National Exchanges Members of India (ANMI) on Saturday, wherein he emphasised on entities keeping track of developments in technology.

"We are using Al for investigations... and also using for a lot of things," Varshney told PTI.

The revelation comes against the backdrop of instances of manipulations in the stock market.

The message is that abiding with the law will be more beneficial and violations will cause problems, he said.

As long as the market is transparent and no manipulation is happening, that is fine with the regulator, he noted.

SEBI has been acting against violators, and enacting on measures to enhance transparency and curb misdoings.

The capital markets regulator is also working on a Cybersecurity and Resilience Framework, which it intends on rolling out after receiving industry feedback.

He urged the broking fraternity to adopt that framework after it is unveiled, saying it would help them to be safe from cyber attacks.

Varshney did not stipulate a time for the rollout, but added that the framework would be mandatory for all market intermediaries and players in the ecosystem.

The development comes after brokerage firm Motilal Oswal faced a cybercrime incident from LockBit, which extorts victims for ransom by stealing and releasing data.

In a Friday consultation paper (February 23), SEBI said it has proposed for index funds and ETFs to be invested in listed companies’ shares which belong to group companies of the sponsor, to the extent of their benchmark indices allowing them. This relaxation comes as part of proposals for ease of doing business when it comes to mutual funds, which have been put forth for consultation by the SEBI.