Securities and Exchange Board of India Chairman Tuhin Kanta Pandey has labelled artificial intelligence-driven cybersecurity threats as one of the most pressing risks to market integrity.
In a recent interaction, Pandey called for aggressive measures against AI-led cybersecurity risks, particularly when it comes to management across all software systems deployed in India's financial markets.
Pandey further clarified that concerns around AI tools are primarily around cybersecurity rather than market manipulation and algorithmic trading risks.
"Most of the recent concerns around AI tools are related to cybersecurity. As you know, markets rely heavily on software systems, and if cybersecurity is threatened or vulnerabilities are found in the software, there is a risk of attacks. If such attacks are successful, they can pose a serious threat to market integrity," he said.
VIDEO | When asked how SEBI is addressing threats from AI tools and their impact on market integrity, SEBI Chairman Tuhin Kanta Pandey says, "Most of the recent concerns around AI tools are related to cybersecurity. As you know, markets rely heavily on software systems, and if… pic.twitter.com/ZdJrczcjdF
— Press Trust of India (@PTI_News) May 18, 2026
"Therefore, we have to proactively ensure that all the software we deploy, including those provided by third-party vendors, is well protected. There has to be aggressive patch management and extensive use of conventional tools to identify vulnerabilities, so that any weaknesses are immediately patched," he added.
Pandey's comments come against the backdrop of growing regulatory concerns around Anthropic's Mythos AI model, which has drawn scrutiny for its ability to autonomously identify and exploit vulnerabilities in major operating systems and browsers.
Finance Minister Nirmala Sitharaman has already raised concerns around Mythos, directing banks to work together on the issue and tasking the Indian Banks' Association to lead sector-wide consultations.
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