Sebi chief unveils tech-driven safeguards for investors at GFF 2025

Speaking at the 6th Global Fintech Fest (GFF) 2025 in Mumbai, Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (Sebi), said technology has been the driving force behind the rapid transformation of India’s capital markets. “From paper-based certificates to one of the most technologically advanced markets in the world, our journey has been remarkable,” said Pandey, adding that collaboration between innovators, regulators, and policymakers has created a financial system that is efficient, transparent, and inclusive.

Reflecting on the digital revolution in the securities market, Pandey said Sebi has intended to enable and facilitate responsible innovation. He explained that over 134 million investors are now participating in India’s markets, a growth made possible through tech-driven onboarding processes such as electronic KYC and mobile-first platforms. “Technology has made investing simpler and more accessible, especially for people in smaller towns who were once excluded from mainstream investing,” said Pandey.

Pandey highlighted several key initiatives that show how Sebi is leveraging technology to protect investors and enhance transparency. “From October 1, 2025, we rolled out validated UPI handles and Sebi's checks to prevent payment name frauds,” he said.

Sebi has also ensured that securities are credited directly into investors’ demat accounts by clearing corporations, providing an additional layer of protection. “Our Investor Risk Reduction Access platform acts as a safety net during broker outages, allowing investors to square off open positions directly,” Pandey added.

On improving efficiency, Pandey highlighted India’s achievement in implementing a T+1 settlement cycle, making it one of the first major markets globally to do so. “This reform has improved liquidity and reduced counterparty risks, giving investors faster access to their funds,” he said.

He also spoke about the expansion of the ASBA framework to secondary markets and the creation of a two-way portability module across clearing corporations. “Such reforms are ensuring smoother, safer, and more convenient transactions for all participants,” Pandey noted.

Discussing regulatory oversight, Pandey stated that Sebi is increasingly relying on technology to enhance its supervision. “Our data analytics and AI/ML models help detect complex manipulation patterns and frauds,” he said. The regulator also utilises social media monitoring tools to take action against unregistered financial influencers and misleading online content. However, Pandey cautioned that with the growing use of technology comes a greater risk. “Cybersecurity threats can cause systemic disruptions, which is why Sebi has implemented a comprehensive cyber resilience framework to ensure preparedness,” he stated.

Looking ahead, Pandey said the future of India’s securities market will be shaped by innovation, inclusion, and resilience. “Through our innovation sandbox, we are testing blockchain applications, and we are preparing for the quantum era with capacity-building initiatives,” he said.

At the end, Pandey added, “Resilience is not a one-time achievement; it is a continuous process of learning, adapting, and anticipating.”