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EquityWireAI Strategy: SEBI issues advisory on risks from AI tools, forms task force for strategy
AI Strategy

SEBI issues advisory on risks from AI tools, forms task force for strategy

This story was originally published at 21:17 IST on 5 May 2026
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Informist, Tuesday, May 5, 2026

 

--SEBI forms task force to examine risks from AI tools like Claude Mythos

--SEBI forms task force to suggest strategy to safeguard from AI based models

--SEBI issues advisory on emerging AI tools for vulnerability detection

 

MUMBAI – The Securities and Exchange Board of India has formed a task force to examine cybersecurity risks from artificial intelligence tools such as Claude Mythos, and suggest a strategy to mitigate these risks. It has also issued an advisory for market infrastructure institutions and other market participants on emerging AI tools for vulnerability detection.

 

"The rapid evolution of emerging technologies including vulnerability identification AI-driven tools (E.g. Claude Mythos) has introduced new dimensions of risks for Regulated Entities," SEBI said in a circular. "Such tools may give rise to heightened risk exposure by enabling identification and potential exploitation of existing vulnerabilities using speed and scale. It may also introduce concerns relating to data confidentiality, application integrity and reliability of outputs."

 

The task force, with representatives from market infrastructure institutions, has been asked to submit a report on priority about vulnerabilities in securities market systems. It will also review security systems of the third part application service providers, including empanelled vendors. 

 

SEBI's advisory for market infrastructure institutions asked intermediaries to update all operating systems and applications with latest patches immediately. SEBI also advised vulnerability assessment and security audits regularly.

 

"Exchanges and Depositaries shall direct their empaneled application vendors (providing COTS solution to respective members) to undertake comprehensive assessment of the risks arising from the use of AI-led vulnerability detection models," the advisory said.

 

SEBI also issued directions related to application programming interfaces and security operations centre. The advisory also said regulated entities must prepare a long-term plan for use of AI in detection.  End

 

Reported by Anshul Choudhary

Edited by Avishek Dutta

 

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