Sebi has constituted a task force named cyber-suraksha.ai to address emerging cybersecurity risks from advanced AI tools, including Anthropic's Claude Mythos model. According to The Economic Times, the task force comprises representatives from market infrastructure institutions, qualified registrar and transfer agents, regulated entities and other stakeholders. In an advisory issued on Tuesday, Sebi cautioned regulated entities about the rising risks from emerging technologies, particularly AI-driven vulnerability identification tools such as Claude Mythos. These systems can detect weaknesses at scale and speed, raising the possibility of their exploitation, while also raising concerns about data confidentiality, application integrity, and the reliability of outputs. The regulator has mandated regular, continuous vulnerability assessments using both conventional and AI-based tools, along with security audits aligned with its cybersecurity and cyber resilience framework. Sebi has directed eligible entities to onboard the Market Security Operations Centre (M-SOC) set up by exchanges for real-time monitoring and threat detection, with exchanges and depositories tasked with ensuring vendors assess risks posed by AI-led models and implement safeguards. A meeting of the task force has already been held to assess risks posed by AI platforms like Mythos and to discuss mitigation measures, as reported by CNBC TV18.
Sebi has issued detailed guidelines for strengthening cybersecurity frameworks based on the task force deliberations. The regulator has mandated regular vulnerability assessments using both conventional and AI-based tools, timely patching of systems, enhanced monitoring through security operations centres, strengthening API security, periodic risk assessments and adoption of measures such as zero-trust architecture to minimise attack surfaces. Market participants will have to engage closely with third-party vendors to ensure timely patch deployment and strengthen the security operation centre (SOC) monitoring, including reviewing low-priority alerts and integrating automated response systems. Sebi has also directed entities to immediately update their operating systems and applications to the latest patches to address known vulnerabilities and to consider virtual patching as an interim measure when fixes are unavailable. The task force will examine cybersecurity risks arising from AI-based models, develop mitigation strategies, facilitate sharing of threat intelligence and best practices, and ensure timely reporting of cyber incidents and vulnerabilities, as noted by CNBC TV18.
Due to the interconnectedness and interdependency of market participants in the securities market ecosystem, a periodic coordinated approach for vulnerability management, information sharing and monitoring/assessment is required to prevent a cascading impact, as stated by Sebi. The task force will also review the cybersecurity posture of third-party service providers and vendors, ensuring comprehensive oversight of the entire ecosystem. Sebi has asked market participants to closely coordinate with third-party vendors to ensure the timely deployment of security updates and undertake comprehensive risk assessments related to AI-led systems. Based on these deliberations, SEBI has issued a detailed advisory outlining steps for strengthening cybersecurity frameworks, as reported by CNBC TV18.
The Securities and Exchange Board of India (Sebi) has proposed extending early pay-in (EPI) benefits to commodity options, allowing market participants to deposit certified goods in accredited warehouses against options contracts sold. According to The Hindu BusinessLine, capital market regulator SEBI plans to introduce early-pay-in settlement in options contracts in the commodity derivatives segment. The proposal was examined and deliberated in the meeting of the Working Group (WG) on review of current regulatory framework of delivery and settlement applicable to Agricultural Commodity Derivatives Segment. Based on discussion, the WG recommended that early pay-in benefit may also be made applicable to options contract. The recommendation was also placed before the Commodity Derivatives Advisory Committee meeting held in February, which also broadly agreed on the same. Clearing corporations may allow market participants to deposit certified goods in accredited warehouses against options contracts sold—similar to the facility currently available for futures contracts. For such positions, clearing corporations may, based on risk assessment, exempt participants from various margin requirements, though mark-to-market margins will continue to be collected. The proposal follows representations from market participants seeking to extend the EPI benefit to options as well. EPI enables investors to deliver securities or underlying assets ahead of the settlement cycle, helping reduce margin requirements, avoid short-delivery penalties and allow faster utilisation of sale proceeds.
Sebi has proposed allowing Online Bond Platform Providers (OBPPs) to offer products regulated by the International Financial Services Centres Authority (IFSCA), as well as certain tax-saving bonds under the Income Tax Act. According to CNBC TV18, currently, OBPPs are permitted to distribute products regulated by domestic authorities such as the Reserve Bank of India and the Insurance Regulatory and Development Authority of India, but not those governed by IFSCA. Under the proposal, OBPPs would be allowed to offer IFSCA-regulated products in compliance with the Foreign Exchange Management Act (FEMA), including limits under the Liberalised Remittance Scheme (LRS). They would also follow norms similar to SEBI-registered brokers operating in GIFT-IFSC. The move is aimed at promoting ease of doing business and expanding investment options for retail investors.
CARE Ratings Limited and National Stock Exchange of India have officially launched the Past Risk and Return Verification Agency (PaRRVA), a framework designed to verify performance claims in the securities market. According to reports from The Economic Times, the initiative was conceptualised by the Securities and Exchange Board of India (Sebi) and its pilot phase was launched in December 2025 by Sebi Chairman Tuhin Kanta Pandey. The platform aims to independently validate risk-return data and standardise disclosures for investors as market participation continues to expand. Full operations of PaRRVA began on May 4, 2026, marking the end of the era of unaudited performance claims by investment advisers, research analysts, and algo-trading service providers. NSE Managing Director and CEO Ashish Chauhan stated that the initiative is intended to provide investors with credible performance data while allowing regulated entities to present verified track records. The framework covers all categories of financial service providers, making it potentially significant as few countries have a similar framework this broad.
