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Informist, Thursday, Sept. 10, 2026

 

--SEBI ED Mithwani:For SEBI, AI use in surveillance is assisting not leading

--CONTEXT:SEBI Executive Director Mithwani's comments at Global Fintech Fest

--SEBI ED Mithwani:Cannot afford "weird mood" of AI to create problem in mkt

--SEBI ED Mithwani: On scale of 5, regulation readiness to tackle AI at 2

 

MUMBAI – As a market regulator, the Securities and Exchange Board of India is using artificial intelligence for investigation and surveillance, but it is mindful to use AI as an assistant and not as something leading to supervision, according to Executive Director Aliasgar Mithwani. The executive director was moderating a session on "AI in Capital Markets: From Trading to Market Surveillance" at the Global Fintech Fest 2026.

 

In terms of the challenges posed by the use of AI by market participants in trading, Mithwani said SEBI was better prepared than peers around the world. But on a scale of one to five, Mithwani rated the general preparedness of regulations and the regulator to tackle the challenges from AI use in the market at two.

 

"Very recently, we saw there was an incident where the AI was in a weird mood. And it entered somewhere and created a havoc," Mithwani said. He said the market regulator cannot afford such a thing in the market where there is large value of money at stake. Mithwani also wondered aloud whether there will be a clash of AI use by the regulator and AI use by the market players.

 

On expectations from data standardisation, SEBI Executive Director Avneesh Pandey said the XBRL standardisation did not evolve into big-ticket innovation. He was moderating another session on governance, innovation, and oversight at "If Market Data Should Be Treated As Infrastructure" at the same conference.

 

The SEBI executive director said entire life cycle of market data used in infrastructure has to be looked at in the governance and oversight requirements. The quality, integrity, and confidentiality of market data used as infrastructure must be retained and there is also a need to build strong audit frameworks to trace the data throughout its life cycle, he said.  End

 

Reported by Rajesh Gajra and Anand JC

Edited by Akul Nishant Akhoury

 

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