AI Brings Risks, Opacity; Regulation Must Evolve to Supervise Technology: SEBI Chief

The Chairman of the Securities and Exchange Board of India (SEBI) has highlighted the urgent need for regulatory adaptation in response to the rapid evolution of technology in the financial markets. He emphasized that advancements such as algorithmic trading, digital platforms, and AI-driven decision-making processes are becoming integral to market operations. While these innovations enhance efficiency and accessibility, they also introduce significant risks and complexities, including a lack of transparency. As technology outpaces existing regulations, the SEBI chief advocates for a proactive approach to regulation that can effectively oversee these developments. This call for evolving frameworks comes amid growing concerns over the potential ramifications of AI on market stability and investor protection, underscoring the necessity for regulators to stay ahead of technological advancements to safeguard the integrity of financial markets in India.