Now Reading: SEBI sets AI rules with kill-switch, eyes global fund hub
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SEBI sets AI rules with kill-switch, eyes global fund hub
The Securities and Exchange Board of India (SEBI) will soon issue guidelines for the responsible use of artificial intelligence and machine learning in capital markets. Chairman Tuhin Kanta Pandey announced on Wednesday that the framework will require human oversight, data controls, and kill-switch mechanisms. The rules take a tiered approach with clear accountability, he said at the FICCI Capital Markets Conference in Mumbai.
Pandey noted that AI can improve surveillance and fraud detection but also brings risks of opacity and bias. Equity issuances crossed Rs 4.5 lakh crore in FY25-26, including Rs 1.9 lakh crore through 366 IPOs. The regulator is also working on a framework to allow global fund management from India and reviewing securities lending and short-selling rules. Proposals for debt markets include ESG debt and corporate bond tokenisation.
Indian Opinion Analysis
The Economic Times report leads with the AI/ML guidelines and the kill-switch detail, framing the story as a proactive regulatory move by SEBI. It also includes a long list of market statistics that showcase market growth and SEBI's broad agenda. The Times of India story, in contrast, leads with the global fund-management proposal and mentions AI only later, giving that reform equal billing. This makes the Times account slightly more focused on business expansion and less on regulatory caution. Both sources report Pandey's remarks identically, but their differing leads signal different editorial priorities. A careful reader should note the common core: mandatory human oversight for AI is certain, but which reform is the headline news depends on the outlet. Watch for the actual guideline text and the final portfolio manager framework.
Coverage: 2 sources, 2 neutral
Sources (2): legal.economictimes.indiatimes.com (neutral report), timesofindia.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
