India regulator explores domestic AI for trading

India is developing a global supervisory toolkit and considering a domestically governed artificial intelligence model for its securities market. The initiative aims to enhance risk assessment while regulators also review compliance rules for foreign investors.

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FILE PHOTO: The logo of Securities and Exchange Board of India (SEBI) is seen on its headquarters in Mumbai, India, March 24, 2025. REUTERS/Hemanshi Kamani/File Photo

India's markets regulator is exploring a domestically governed artificial intelligence model for securities trading, joining international efforts to build public digital infrastructure for finance. The initiative follows the adoption of global supervisory toolkits aimed at strengthening risk management across domestic exchanges. The framework seeks to balance technological innovation with accountability, addressing data reliability and oversight challenges in automated markets.