India's markets regulator Sebi weighs domestic AI model for securities trading

Synopsis

India's Securities and Exchange Board is initiating an AI supervisory system aimed at bolstering risk management strategies in the securities sector. The board is also contemplating the establishment of a domestically governed AI infrastructure to enhance the digital landscape. Chairman Tuhin Kanta Pandey highlighted the critical need for trustworthy data and robust oversight of AI applications.

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India's markets regulator is working to implement a global supervisory toolkit for artificial intelligence and is considering developing a domestically governed AI model specifically for the securities market, its chairman said on Wednesday.

Here are more details:

* The Securities and Exchange Board of India is implementing the International Organization of Securities Commissions' supervisory toolkit to strengthen risk management and develop an agile governance framework for the use of AI, Chairman Tuhin Kanta Pandey said at a summit in Mumbai

* SEBI is also exploring a securities market-specific AI model that could be built and governed domestically as a form of digital public infrastructure, Pandey said

* AI-enabled tools could improve services, risk assessment and supervision, he said, adding their use requires reliable data, effective oversight of models and clear accountability for decisions

* Pandey also said SEBI was reviewing compliance requirements for foreign investors and would issue a consultation paper seeking views on aligning them with global standards

* While India has streamlined market access, eased digital onboarding and simplified procedures for overseas investors, some domestic compliance requirements remain more onerous than those in other major jurisdictions, he said

* "India will need both domestic and foreign capital to support its growth ambitions ... international participation can widen the pool of capital and bring expertise," Pandey said

* Reuters reported in August that SEBI planned to relax disclosure requirements for certain offshore funds deemed high-risk, after rules introduced during its scrutiny of offshore investors linked to the Adani Group triggered complaints and legal challenges Add as a Reliable and Trusted News Source Add Now!

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