SEBI to deepen use of technology, collaboration to build resilient and inclusive markets: Tuhin Kanta Pandey

The Securities and Exchange Board of India (SEBI) will increasingly leverage technology and cross-sector collaboration to strengthen resilience, inclusivity, and transparency in capital markets, Chairperson Tuhin Kanta Pandey said on Wednesday (October 8) at the Global Fintech Festival (GFF) 2025 in Mumbai.

Delivering a keynote address on "Resilient and Inclusive Capital Markets in a Tech-Driven World," Pandey stated that India’s securities markets have undergone a significant digital transformation over the past decade, with technology now integral to every process, from account openings and settlements to investor protection and market supervision.

"Today, the Indian securities market is being shaped by reforms and an ecosystem that is vibrant, resilient, and inclusive. Technology is at the core of every step," he said.

Pandey said SEBI’s focus rests on three broad priorities—investor protection, market development, and effective regulation—all of which depend heavily on innovation. "Whether it is investor onboarding, payment safeguards, or risk management, innovation has made the market faster, simpler, and safer," he said.

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Among SEBI’s recent measures, he highlighted UPI-based validation for IPO and secondary market payments, the Unified Investor App for consolidated portfolio tracking, and the option for investors to voluntarily freeze trading accounts in case of suspicious activity. The regulator has also strengthened its SCORES complaint redressal platform and introduced initiatives to help investors recover unclaimed funds and securities.

"We have built an ecosystem where the regulator, industry, and intermediaries work together. That coordination is our biggest strength," Pandey said.

Citing faster settlement cycles and the upcoming T+0 pilot, he said India is moving toward near-instantaneous settlement, improving liquidity and reducing counterparty risk. SEBI is also deploying data analytics, AI, and digital forensics to detect complex market manipulation and unregistered online advisory activity.

However, Pandey warned that technological advancement brings new vulnerabilities. "Every leap in technology brings its own challenges. Cybersecurity threats have the potential to create systemic disruptions," he said, referring to SEBI’s comprehensive cyber-resilience framework introduced in August 2024.

The regulator, he added, is preparing for future challenges, including quantum-safe cryptography and responsible AI deployment, through initiatives such as the Innovation Sandbox, which allows fintech startups to test blockchain-based solutions in controlled conditions.

"Resilience cannot be built by the regulator alone," Pandey emphasised. "It is a shared responsibility among market infrastructure institutions, intermediaries, fintech innovators, and all of us in this ecosystem."

He concluded by urging the industry to balance innovation with caution. "The question is not only how fast we grow, but how safely," he said. "Let us continue to harness technology to build thoughtfully, collaboratively, and with an unwavering focus on trust—a capital market that truly embodies a resilient and inclusive India."

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