Securities and Exchange Board of India (SEBI) chair Tuhin Kanta Pandey announced comprehensive regulatory initiatives aimed at making India's capital markets more accessible and investor-friendly at the 15th ANMI International Capital Market Convention. The regulator is focusing on streamlined processes, enhanced cybersecurity, and market development to strengthen the financial ecosystem.

Simplified Investor Onboarding Initiatives

SEBI is prioritizing simplified investor onboarding processes, particularly targeting retail clients and Non-Resident Indians (NRIs). The regulator aims to reduce repeat documentation requirements and streamline re-KYC processes by allowing Key Repository Agencies (KRAs) to retain only updated records. This initiative is designed to eliminate redundant paperwork and create a more efficient onboarding experience for investors.

Public consultations on these proposals are expected to commence shortly, allowing stakeholders to provide input on the proposed changes.

Penalty Rationalization and Compliance Framework

The regulator will introduce Phase II of its penalty rationalization initiative, expanding the framework to include newer obligations such as cyber incident reporting and Qualified Stock Broker (QSB) requirements. This move aims to balance compliance enforcement with operational flexibility for market participants.

Depository participant regulations are also under comprehensive review to align with evolving market needs and ensure regulatory frameworks remain relevant to current market conditions.

Cybersecurity and Investor Protection

Pandey emphasized the critical importance of cybersecurity in protecting investors from emerging threats including hacking and unauthorized access. The chairman highlighted the industry's responsibility to strengthen safeguards for client trading accounts and the overall trading environment to ensure long-term market participation.

"The industry must strengthen safeguards to secure client trading accounts and the overall trading environment for long-term participation," Pandey stated during the convention.

Market Development Priorities

SEBI's market development agenda focuses on deepening multiple segments of India's financial markets. The regulator is implementing regulatory reforms and outreach programs across various market segments to enhance liquidity and participation.

Securities Markets Code 2025

Pandey highlighted the Securities Markets Code 2025, currently before Parliament, which seeks to consolidate three separate acts into a unified, principle-based framework. This legislative initiative represents a significant step toward regulatory simplification and modernization.

The chairman called for collaboration between regulators, market intermediaries, and investors to ensure smooth implementation while maintaining market integrity. "Growth has been remarkable, but sustainability will be driven by the convergence of technology, trade, and trust," Pandey noted, urging collective efforts to create a resilient, inclusive, and transparent market ecosystem.

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey announced the deployment of artificial intelligence tools to combat fraud and protect investors during the Association of National Exchanges Members of India (ANMI) 15th International Capital Market Convention 2026 in Chennai. The regulator aims to strengthen market integrity through technology-driven solutions that can identify and flag fraudulent activities.

AI-Powered Fraud Detection Systems

SEBI is actively implementing internally developed AI tools to safeguard investor interests and prevent them from falling prey to fraudulent schemes. The flagship SEBI Sudarshan system is being deployed to detect fraudsters on social media platforms who pose as registered financial advisors to mislead investors.

"We are actively making use of internally developed AI tools to protect investors and ensure market integrity. The SEBI Sudarshan system is being used to detect fraudsters on social media posing as registered advisors to mislead investors," Pandey stated during his address.

Comprehensive Investor Protection Strategy

The regulator is developing additional AI capabilities to strengthen its oversight mechanisms:

Pandey highlighted that SEBI's investor survey revealed the need for greater access to credible information. The regulator plans to expand its investor awareness and outreach campaigns through a multilingual, multimedia, and multi-agency strategy.

Market Growth and Performance

India's capital markets have demonstrated significant growth across multiple segments including equity, derivatives, mutual funds, real estate investment trusts, infrastructure investment trusts, and corporate bonds. The expansion reflects increased investor participation and market confidence.

Regulatory Architecture Enhancement

The SEBI Chairman emphasised the regulator's commitment to building a smarter regulatory framework that balances compliance efficiency with investor protection. "We are building a smarter regulatory architecture, one that streamlines compliance and removes duplication while safeguarding investor protection and market integrity," Pandey explained.

The Past Risk and Return Verification Agency (PARRVA) will play a crucial role in providing investors with verified performance data, helping them make informed decisions and steering them towards credible intermediaries while avoiding unreliable financial influencers.