Sebi Chief Pandey highlighted the dual nature of AI in the securities market
GS3Economy · S&T · Environment · Security· IT, AI, semiconductors & computing· Prelims + Mains·
Why in news
Sebi Chief Pandey highlighted the dual nature of AI in the securities market, emphasizing the need for anticipatory regulation to balance fraud detection benefits against risks like market concentration.
Background
Sebi is adopting a proactive regulatory approach to address technological evolution in finance. The regulator is implementing Supervisory Technology (SupTech), RegTech, and enhanced cybersecurity frameworks to ensure market resilience.
Facts for Prelims
- S&TSupTech: Supervisory Technology used by regulators like Sebi to enhance oversight.
- PostPandey: Current Chief of the Securities and Exchange Board of India (Sebi).
- FactSebi's regulatory focus includes addressing market concentration and interconnectedness risks.
For Mains
Q. Discuss how the integration of AI and SupTech can enhance market integrity while addressing the risks of algorithmic concentration and systemic interconnectedness in financial markets.
Dimensions to cover in your answer
- Regulatory lag: Difficulty in creating anticipatory frameworks that keep pace with rapid AI evolution
- Systemic risk: Concentration of market power in a few AI-driven entities affecting market stability
- Data governance: Ensuring integrity and privacy of financial data used in automated fraud detection
Keywords: Anticipatory Regulation · SupTech · RegTech · Market Integrity · Systemic Risk · Data Governance
More Science & Technology notes
- Nasa aims to send astronauts to the moon in March after successful test · 20 February 2026
- AI Summit drew $250bn investment commitments, 5 lakh visitors: Vaishnaw · 20 February 2026
- A.P. is developing Quantum ecosystem for global markets, says CM Naidu · 20 February 2026
- Urgent research needed to tackle AI threats, says Google AI boss · 20 February 2026
- T.N. Assembly · 20 February 2026
- Mumbai Climate Week 2026: Maharashtra's Bela Gram becomes first net-zero village through panchayat leadership · 20 February 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.