NE BUSINESS BUREAU
MUMBAI, APR 25
India’s market regulator, the Securities and Exchange Board of India (SEBI), faces a new-age risk landscape shaped by AI-led cyber threats and retail investor vulnerabilities, Finance Minister Nirmala Sitharaman said on Saturday, urging faster upgrades in surveillance, awareness and regulatory agility.
Watch: Full Video of Smt @nsitharaman's address at the 38th SEBI Foundation Day in Mumbai, Maharashtra.@PIB_India @MIB_India @FinMinIndia @MCA21India @SEBI_updateshttps://t.co/i7BlhyD20h
— Nirmala Sitharaman Office (@nsitharamanoffc) April 25, 2026
- Cybersecurity top priority: FM warns a single attack could “disrupt markets at national scale”
- Retail protection push: Crackdown on fin-fluencers; call for responsible financial education frameworks
- Awareness drive launched: ‘Mission Jagrook’ to expand investor literacy in regional languages
- Reform & growth story: 140 million investors, ₹10 trillion annual capital formation underline market depth
Delivering the keynote at SEBI’s 38th Foundation Day, Sitharaman issued a stark warning:
“A single successful cyberattack on a major exchange, depository, clearing corporation, or large broker could disrupt markets at national scale, erase wealth, and shake public confidence in ways that take years to rebuild.”
She underlined that AI-powered attacks are becoming “faster, more adaptive, scalable, and in some cases more autonomous”, necessitating continuous upgrades in defence systems.
“Therefore, not just SEBI, but all Regulated Entities will have to remain exceptionally vigilant. The tools of attack are evolving at high speed, and the tools of defence must evolve even faster.”
Deepfake Threats & Retail Investor Risk
Highlighting a surge in fake investment apps and deepfake videos impersonating public figures, the Minister called for swift takedowns and stronger digital policing, alongside large-scale public awareness.
“We need enabling frameworks for responsible financial education, but we should not tolerate the monetisation of uninformed retail investor trust for personal enrichment.”
She commended SEBI’s action against unregistered “fin-fluencers”, terming it a critical step to safeguard retail investors.
‘Mission Jagrook’ & Awareness Push
The Finance Minister launched ‘Mission Jagrook’, SEBI’s nationwide investor awareness campaign, and emphasised the need for deeper outreach:
“SEBI should invest very substantially in public awareness on every major platform in regional languages.”
She also praised initiatives like ‘SEBI Check’ for verifying intermediary credentials and SEBI’s AI-driven analytics and digital forensics lab to track complex fraud patterns.
“These are important interventions, and they should be expanded with urgency and visibility.”
Regulatory Approach & Global Integration
Advocating principles-based and consultative regulation, Sitharaman said:
“Our investors are global, our issuers engage international pools of capital and regulatory developments in one major jurisdiction increasingly influence market practice far beyond its borders.”
She stressed that grievance redressal systems must remain credible, accessible and timely, reinforcing trust in capital markets.
Market Growth Backdrop
SEBI Chairman Tuhin Kanta Pandey highlighted India’s expanding market scale:
- 140+ million investors
- 5,900+ listed companies
- ~15% CAGR market capitalisation growth
- ₹10 trillion annual primary market fundraising
He noted continued reforms to simplify regulations, improve ease of doing business, and deepen capital formation.
Bottom Line:
With cybersecurity, investor awareness, and regulatory balance emerging as critical pillars, India’s capital markets are entering a phase where trust, technology and transparency will define the next growth cycle.
