Guidelines on responsible use of AI, ML in markets to be issued soon; Aim is to balance innovation with investor protection; Rs 260 bn raised through 79 IPOs till July’26
FinTech BizNews Service
MUMBAI, 19 August 2026: Mr Tuhin Kanta Pandey, Chairman, Securities and Exchange Board of India, while addressing the 23rd edition of ‘FICCI CAPAM 2026’, said that India’s capital markets are entering a new phase and we must build institutions at scale. “The task now is to turn the scale into depth, resilience and opportunity. AI, financialization and new investment frontiers are not separate but together they can make markets smarter, widen participation and connect capital with businesses and assets. But all of this rests on one foundation which is trust. Our responsibility is to keep this gateway to India’s future open, efficient, innovative and trusted,” he added.
Mr Tuhin Kanta Pandey, Chairman, SEBI
Mr Pandey further stated that Indian India’s capital markets have transformed and are no longer merely a barometer of economic activity but an important driver of it. They connect household savings with enterprise, global capital with domestic opportunity, and risk capital with new ideas, he noted.
Speaking on the innovations and the use of AI, SEBI Chairman added, “We will shortly be issuing guidelines for the responsible use of AI and ML in our markets. These guidelines will provide for a tiered approach, with an emphasis on clear accountability and governance controls. The framework will require kill switches, human-in-the-loop controls, and robust data controls. The aim is to balance innovation with investor protection.”
Highlighting the future opportunities, SEBI Chairman said that the next phase of growth must use technology intelligently, widen investment opportunities, deepen financing channels and make regulation more future-ready. “We must widen investment frontiers, capital must flow more easily in both directions, deepen markets that finance growth; technology must strengthen both market infrastructure and regulatory oversight and finally, the rulebook itself must keep pace,” he emphasized.
Mr Pandey also stated that industry associations, like FICCI will have an important role in our journey. With a wide network across India, industry associations are well placed to identify high-potential enterprises in sectors like manufacturing, energy, IT and logistics that are ready to access the capital markets. “I urge the industry associations to adopt a cluster-based outreach approach - identifying emerging enterprises, educating them on the benefits and responsibilities of listing and helping them understand the pathways available. SEBI will be happy to support such outreach efforts,” he added.
Addressing a Special Session, Dr Alok Tiwari, Joint Secretary (FM), Department of Economic Affairs, Ministry of Finance, Govt of India said that India’s capital market has undergone a dramatic transformation in recent years. This transformation is structural and has been driven by a combination of factors, including increasing investor participation and growth. “The legal and statutory architecture and regulatory functions have also been progressively modernized,” he added.
Mr Ashishkumar Chauhan, MD & CEO, National Stock Exchange of India said that the next generation of market infrastructure must reduce frictions across the entire financial lifecycle while making the system more efficient, intelligent, and inclusive. “This is where technology is setting the next frontier. Artificial intelligence is beginning to transform the way financial institutions process information and is also reshaping the investment landscape,” he added.
Mr Nehal Vora, MD & CEO, Central Depository Services India Ltd highlighted on the importance of investor education and awareness programs. “CDSL has been engaging in various investor awareness programs to ensure that the investor remains safe and protected. For us, AI is not artificial intelligence but an ‘Atmanirbhar Investor’ who not only uses AI but has the ability to understand where it needs to intervene as a human,” he added.
Mr Vijay Sankar, Senior Vice President, FICCI and Chairman, The Sanmar Group said that FICCI would be privileged to partner with SEBI on structured financial literacy and lower-cost, technology-led distribution models, helping convert awareness in India’s smaller towns into greater participation and channel savings into long-term capital, with the security and assurance which SEBI provides.
Mr Sunil Sanghai, Chairman, FICCI Capital Markets Committee and Founder & CEO, NovaaOne Capital said that Indian capital market has evolved from a market characterized by administrative pricing, limited participation, and modest global relevance into one of the largest and most technologically advanced markets in the world. “We have built scale, infrastructure, and participation, and, most importantly, we have built trust. Our ambition should be to have one of the world’s most competitive capital markets,” he highlighted.
Ms Jyoti Vij, Director General, FICCI said that story of India's capital markets has been remarkable. “From a market that was once relatively narrow in participation and scale, India today boasts one of the most vibrant, technology-enabled, and diversified capital market ecosystems globally,” she added.
Mr Vijay Chandok, Co-Chair, FICCI Capital Markets Committee and MD & CEO, National Securities Depository Ltd said that Indian capital markets are no longer reflecting India’s growth story, but they are actively enabling it. “Capital markets today are financing India’s enterprises, innovation, infrastructure at an unprecedented pace,” he added.
