SEBI Embraces Artificial Intelligence for Market Investigations

According to a senior official of the regulatory body, the Securities and Exchange Board of India (SEBI) has embarked on a new frontier in market regulation by integrating artificial intelligence (AI) into its investigative processes.

Technological Advancements in Market Oversight:

Kamlesh Chandra Varshney, a whole-time member of SEBI, emphasized the importance for entities to stay abreast of technological advancements, highlighting the regulatory benefits of compliance with established laws and regulations.

Speaking at the 13th international convention of the Association of National Exchanges Members of India, Varshney revealed that SEBI has incorporated AI into its investigative toolkit. He underscored the regulator’s commitment to leveraging AI for its operations.

Transparency and Market Integrity:

Varshney emphasized that SEBI’s primary concern is to ensure market transparency and integrity. He indicated that the regulator remains content as long as the market remains transparent and free from manipulation.

Varshney cautioned brokers against engaging in stock market manipulations and urged them to remain vigilant to prevent such activities. He stressed the importance of maintaining investor trust and integrity in financial markets.

SEBI Regulatory Actions Against Manipulative Practices:

SEBI has been proactive in clamping down on market misdoings, including front-running activities, through stringent regulatory measures and enforcement actions.

In line with its commitment to enhancing regulatory efficiency, they announced measures to promote ease of doing business and compliance reporting. 

This includes directives for intermediaries to upload certifications obtained from clients onto the KYC Registration Agencies (KRAs) systems to streamline compliance processes.

Implementation Guidelines by SEBI:

SEBI outlined specific implementation guidelines, including deadlines for intermediaries to upload certifications onto KRA systems, demonstrating the regulator’s proactive approach to regulatory oversight and compliance management.

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