Corporate governance must keep pace with the rapid adoption of artificial intelligence and emerging technologies, but companies cannot shift responsibility for decisions to machines, according to SEBI chief general manager Rajesh Dangeti. Speaking at FICCI's second National Conference on Agile Governance, Dangeti emphasized that technology may automate decisions but it cannot automate accountability. "If an AI-generated earnings presentation contains misleading information, the accountability does not shift. If an algorithm manipulates markets, responsibility remains with those who designed it, approved it and deployed it," he stated. Recent developments in AI governance showcase how platforms like Dhancept are implementing comprehensive responsible AI frameworks that align with global standards and regulatory requirements.
Companies have been increasingly deploying AI across finance, compliance, trading systems, customer service and risk management, prompting regulators to focus on governance frameworks that can respond to technological change without compromising investor protection. Boards can no longer view governance through the narrow lens of statutory compliance, Dangeti explained. "Compliance is necessary, but compliance alone is not sufficient. A company may comply with the regulatory requirement and yet may fall short of the standards of corporate governance," he noted, emphasizing that governance reflects the quality of judgment exercised in the boardroom and the willingness to place long-term credibility above short-term gains.
The responsibilities of boards have increased with governance today encompassing oversight of cyber resilience, artificial intelligence, data governance, operational resilience, sustainability and third-party risks, in addition to traditional compliance functions. Digital literacy, cyber resilience and AI governance can no longer remain confined to technology teams but must become core boardroom priorities, Dangeti stated. As of May 31, the number of demat accounts had crossed 22.9 crore, while Indian companies mobilised more than ₹1.9 lakh crore through around 366 IPOs during 2025-26, reflecting not just market growth but the trust reposed by millions of investors.
"Governance is fundamentally about building trust," Dangeti said, emphasizing that trust of millions of investors who participate in markets with the expectation of being treated fairly. "Without trust, capital hesitates. Without confidence, investment slows and without governance, trust cannot endure," he noted. The official stated that SEBI has been reviewing governance regulations and compliance frameworks with the objective of making them contemporary, practical and proportionate while maintaining transparency, accountability and investor protection as markets continue to evolve. Recent AI governance developments demonstrate how platforms are implementing comprehensive trust frameworks that ensure transparency and accountability in AI-driven decision making.
