SEBI To Deploy AI Tools To Combat Fraud, Protect Investors And Ensure Market Integrity
Pandey also said that the PARRVA will provide investors with verified performance data, nudging them towards credible intermediaries and away from finfluencers.
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said the regulator will deploy AI tools to safeguard investors’ interests and prevent them from falling prey to fraud.
These tools will help flag fraudsters and con artists posing as legitimate financial advisors who mislead investors.
The SEBI chairman was speaking at the Association of National Exchanges Members of India (ANMI) 15th International Capital Market Convention 2026 in Chennai.
"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 said.
He noted that SEBI’s investor survey highlighted the need for greater access to credible information.
"We are developing an AI tool to analyse cyber audit reports and identify gaps... SEBI's investor awareness and outreach campaigns will continue to expand through a multilingual, multimedia, and multi-agency strategy... The facilities of validated UPI handles, and the SEBI Check are our first line of defence against cyber fraud..." Pandey said.
Pandey also said that the Past Risk and Return Verification Agency (PARRVA) will provide investors with verified performance data, nudging them towards credible intermediaries and away from finfluencers.
He further said that India’s capital markets have been surging across equity, derivatives, mutual funds, real estate investment trusts, infrastructure investment trusts and corporate bonds.
The SEBI chairman said that the number of unique investors has surged from 4.3 crore in Fiscal 2020 to 13.7 crore as of today.
The first nine months of this financial year have seen 1.7 lakh crore raised through 311 IPOs (Initial Public Offerings), with total equity mobilisation already crossing 3.8 lakh crore, he stated.
"We are building a smarter regulatory architecture, one that streamlines compliance and removes duplication while safeguarding investor protection and market integrity, Pandey said.
