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Informist, Wednesday, Oct. 28, 2026

 

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--SEBI chief: Delinking F&O expiry price from closing auction not aberration 
--SEBI chief: Having more bourses is okay, but have to be feasible, liquid 
--SEBI chief: Not actively mulling review of norms on self-listing by bourses 
--SEBI chief: Very good that Indian companies coming to public mkts 
--SEBI chief: Stock market long-term cycles across countries never smooth 
--SEBI chief: Mkts must be liquid enough to invest, exit with confidence 
--SEBI chief:Don't think current rules for FPIs "very onerous" 
--SEBI chief: Not right to comment on investors' entry, exit choices 
--SEBI chief: Want more improvement in FPI on-boarding process 
--SEBI chief: Made progress in easing timelines for FPI on-boarding 
--SEBI chief: Continuously meeting FPIs for feedback, trouble spots 
--SEBI chief:Understand FPI compliance in India more onerous vs other regions 
--SEBI chief: To issue paper reviewing FPI on-boarding compliance norms 
--SEBI chief: To issue consultation paper reviewing FPI compliance norms 
--SEBI chief: Securities mkt AI model to be built, governed domestically 
--SEBI chief: Exploring development of securities mkt specific AI model 
--SEBI chief: Tech improves svcs, risk assessment, supervision 
--SEBI chief: AI tools can help see patterns that warrant close attention 
--SEBI chief: Mandated regulated entities to delink from unregulated ones 
--SEBI chief: Monitoring social media for misleading, manipulative content 
--SEBI chief: Informed investors better equipped to understand risks 
--SEBI chief: Calibrated framework for tech glitches for bourses, brokers 
--SEBI chief: Aim to make mkt access clear, more efficient 
--SEBI chief: Recent fast track mechanism reduces time to mkt for AIFs 
--SEBI chief: Recent tweaks to accredited framework broadened investor pool 
--SEBI chief: Mkts must address fund raise needs, what happens thereafter 
--SEBI chief: Securities mkt can deepen link with India's financing need 
--CONTEXT: SEBI Chairman Tuhin Kanta Pandey speaking at BS BFSI Summit 
--SEBI chief: More household savings now reaching fincl markets 
 

 

MUMBAI – The Securities and Exchange Board of India is exploring the development of an artificial intelligence model specifically for the securities market that would be built and governed domestically, SEBI Chairman Tuhin Kanta Pandey said on Wednesday.

 

"Given concerns about the confidentiality and availability of frontier AI models, we are exploring the possibility of developing a securities market-specific AI model that could be built and governed domestically as a form of digital public infrastructure," Pandey said at the Business Standard BFSI Summit here.

 

AI-enabled tools can help identify patterns that warrant closer examination, strengthening risk assessment and market supervision, he said. "Using AI will require reliable data, effectiveness, modern oversight and clarity about who is accountable to our decisions," Pandey said, adding that faster and more automated processes make sound institutional judgement even more important.

 

SEBI is also working to implement the International Organization of Securities Commissions' supervisory toolkits for AI use in the Indian securities market. This would support risk management and the development of an agile AI governance framework, he said.  

 

On his views on compliance rules for foreign portfolio investors, the SEBI chairman said he did not think they were "very onerous", citing the instance of recent reductions in timeline for onboarding. He said FPIs may find the Indian regulations onerous when compared with some other jurisdictions where they invest.

 

SEBI continuously meets FPI officials when they come to India and notes feedback from them and the specific areas which they find troublesome, he said. SEBI is reviewing these and other compliance requirements and will issue a consultation paper to seek views on aligning them with global standards while preserving the safeguards needed for investor protection and market integrity, Pandey said.

 

On selling by FPIs in the last one year, the SEBI chairman was of the view that it was not right for the capital market regulator to comment on any investor's choice to enter and exit. SEBI's job is to ensure that markets are liquid and all investors can invest and exit with confidence. 

 

On the closing auction session, Pandey said it was here to stay in the cash market and the market regulator has only delinked the equity derivatives settlement expiry price from closing auction price. This is not an aberration, and there is no standard practise to keep the two prices linked, he said.

 

To a question on self-listing by stock exchanges, Pandey said the proposal is neither on the table, nor off the table for the SEBI. The proposal is not being actively considered, he said. "Obviously, one point is very clear that, you know, in a sense, exchanges also are regulators. And if your own scrip is trading, then obviously you can't be a regulator on your own thing," he said. If a stock exchange cannot regulate itself, then someone else has to do it, he said.

 

But SEBI has not come to any view on whether with guardrails this can be taken care of, he said. On the proposal by a former regional stock exchange to again start an exchange, the SEBI chairman said having more number of stock exchanges is not a problem but the challenge is liquidity, whether the new stock exchange can generate trading interest. 

 

 

Talking of recent initiatives taken by SEBI to deepen the link between securities market and India's financing needs, Pandey said the recent changes to accredited investor framework has broadened the investor pool size. For alternative investment funds, the recent fast track mechanism reduces time to market for funds.

 

SEBI has also directed regulated entities to dis-associate themselves from unregulated entities, he said. The market regulator recently calibrated the framework for handling of tech glitches by stock exchanges, clearing corporations, depositories, stock brokers, and depository participants.

 

Pandey said SEBI was monitoring social media for misleading, manipulating content, and actively seeking action from social media companies to take such content down. Informed investors are better equipped to understand risks in the market, he said.

 

On the recent spate of IPOs, the SEBI chairman said it is very good that companies in India are tapping the capital markets. Some European markets go without an IPO for a full year, he said. On the flattish trend in stock market cycles, Pandey said long-term cycles are never smooth across equity markets all over the world.  End

 

Reported by Rajesh Gajra, Kabir Sharma, and Pratiksha

Edited by Akul Nishant Akhoury

 

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