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.

The Securities and Exchange Board of India (SEBI) is set to provide significant relief to Non-Resident Indian (NRI) investors by reducing the documentation burden associated with Know Your Customer (KYC) processes. SEBI Chairman Tuhin Kanta Pandey made this announcement on Saturday, outlining the regulator's commitment to streamlining investment procedures for overseas investors.

Proposed KYC Reforms

Pandey revealed that SEBI is actively working to reduce documentation requirements and simplify the re-KYC process. The proposed reforms aim to address long-standing concerns of NRI investors who have faced challenges with extensive paperwork and complex compliance procedures.

The key aspects of the planned reforms include:

Role of KYC Registration Agencies

Under the proposed framework, KYC Registration Agencies (KRAs) will play a crucial role in the simplified process. These agencies will be required to maintain only updated records, eliminating redundant documentation and reducing the administrative burden on both investors and regulatory bodies.

Public Consultation Process

SEBI plans to initiate a public consultation on these proposals in the near future. This consultation will allow stakeholders, including NRI investors, financial institutions, and market intermediaries, to provide feedback on the proposed changes before their implementation.

The move represents SEBI's continued efforts to enhance the ease of doing business for foreign investors and strengthen India's position as an attractive investment destination for the global Indian diaspora.