Business · India Bureau
Sebi deploys artificial intelligence to combat market manipulation
India's Securities and Exchange Board is leveraging AI and machine learning technologies to detect irregularities in trading patterns, social media activity and derivatives markets. The move reflects the regulator's recognition that traditional surveillance methods are insufficient for monitoring increasingly complex financial markets.
LSN India ·
The Securities and Exchange Board of India (Sebi) is turning to artificial intelligence and machine learning algorithms to strengthen its oversight of the country's capital markets and clamp down on fraudulent activities. The regulatory body is now employing these advanced technologies to systematically scan trading data, monitor social media platforms and analyse derivatives transactions for suspicious patterns and anomalies that may indicate market manipulation.
Traditional surveillance methods have become inadequate as financial markets grow more sophisticated and trading volumes surge. By automating the detection of irregularities across multiple data sources simultaneously, Sebi aims to identify potential violations more rapidly and accurately than manual monitoring processes would allow.
The deployment of AI-powered tools represents a significant upgrade to Sebi's enforcement capabilities at a time when market participants are becoming increasingly inventive in circumventing regulations. The technology enables the regulator to process vast quantities of market data in real-time, flagging anomalies that warrant further investigation by compliance teams.
India's markets regulator has previously signalled its intent to modernise its surveillance infrastructure to keep pace with global financial markets. The adoption of machine learning algorithms marks a concrete step toward building a more responsive regulatory framework capable of protecting investor interests in an era of rapid technological change and increased market complexity.