Markets regulator Sebi will be coming up with rules to avoid misuse of trading terminals put up by brokers, chairman Tuhin Kanta Pandey said on Saturday.
Addressing an event organised by a group of brokers here, Pandey asked the market ecosystem to treat cyber security as a "business priority" and not as an information technology expense.
"We are developing a framework to put in place safeguards to prevent misuse of trading terminals," Pandey said, addressing an event organised by ANMI here.
Apart from this, Sebi is also mulling to introduce a "graded compliance" system for brokers which will reflect their scale, client exposure and reliance on technology, Pandey said.
Sebi is also exploring an AI (artificial intelligence) sandbox, where new tools can be tested safely, Pandey said, adding that innovators need to be provided with regulatory clarity.
"We are finalising the guidelines on the responsible use of AI. They will follow a tiered approach, with clear accountability, data controls, kill switches and human oversight, in line with IOSCO's toolkit," he added.
He also announced that the inspection portals will be made into a single digital workflow, making supervision faster and more consistent.
The career bureaucrat-turned-market regulator said the next wave in retail broking will not come from the big cities but from our towns and villages.
He cited Sebi surveys showing the interest among the Indian people to invest in the markets, and asked the market ecosystem to make sure that they invest wisely and stay longer.
Addressing brokers, he said, "You are often the first to see when the risk they take outgrows their resources. So think of KYC as "Know Your Client's Needs." Make it an ongoing conversation, not a one-time form-filling exercise."
"A client who understands risk invests wisely and stays invested longer. That is good for the client, for you and for the market," he added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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