The Securities and Exchange Board of India (SEBI) is embracing technology to transform the capital market ecosystem, with a particular focus on artificial intelligence (AI). SEBI Chairperson Madhabi Puri Buch emphasized the role of AI in democratizing the deployment of technology within the organization, allowing for greater inclusivity and wealth creation in the market.
AI has been instrumental in various initiatives undertaken by SEBI, such as introducing faster settlement processes, reducing timelines for IPOs, online KYC, and online dispute resolution for investors. These technological advancements have improved efficiency and transparency in the Indian securities market, making it easier for market participants and retail investors to engage with the system.
However, as SEBI Whole-time Member Ananth Narayan pointed out, technology also comes with challenges, as any glitch or malfunction can have serious consequences for the entire ecosystem. To mitigate risks and improve efficiency further, SEBI is focusing on reducing settlement times and enhancing cyber security measures.
SEBI’s regulatory approach has been to incrementally support technology-driven processes, making them accessible and sustainable for all stakeholders. By leveraging technology effectively, SEBI aims to create a market ecosystem that is efficient, transparent, and inclusive, ultimately benefiting all participants in the capital market.
In conclusion, SEBI’s embrace of technology, particularly AI, is driving significant transformation in the Indian securities market, paving the way for a more efficient, transparent, and inclusive system that fosters wealth creation and economic growth.
