The Securities and Exchange Board of India will shift its focus to a more disclosure-based regime as artificial intelligence continues to evolve, according to Chairperson Madhabi Puri Buch.
Buch highlighted the opportunities in the AI space and the associated risks with it while speaking at the Global Fintech Fest 2023 in Mumbai.
"In the coming time, artificial intelligence will be giving high-quality advice in cases of disclosure," Buch said. It also becomes important to balance client ease, cybersecurity, and risk control in the changing space, she said.
Talking about the T+1 settlement, Buch said that India is the first jurisdiction on the globe that has moved towards it. "We are now talking about one-hour settlement, and that will be a stepping stone to instantaneous settlement," she said.
In January 2023, India fully transitioned to the T+1 settlement system when all large-cap and blue-chip companies switched to the system. Before this, the market was following a T+2 cycle, but with the switch financial transactions in the market started happening faster.
Addressing the need for the continuous working of the markets, Buch said that SEBI is working on a framework to ensure that investors continue to have access to the stock exchanges in case a broker loses access. A mechanism is being devised through which every client will have direct access to the exchanges in such cases, according to Buch. Through this, investors will be able to manage risk reduction and close out their positions in time, she said.
SEBI is also planning to set up a performance validation agency in order to protect investors. Buch said that the market regulator is trying to find solutions structurally.
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