Union Minister for Finance and Corporate Affairs. Nirmala Sitharaman delivered the keynote address at the 38th Foundation Day Programme of the Securities and Exchange Board of India (SEBI), in Mumbai today.
Sitharaman also digitally launched SEBI’s nationwide investor awareness initiative ‘Mission Jagrook’ on the occasion.
In her keynote address, the Union Finance Minister urged SEBI to be ready to meet the emerging challenges, the most pressing of which is cybersecurity challenges. 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, stated. Sitharaman. She added, AI-led tools are making cyberattacks faster, more adaptive, scalable, and in some cases more autonomous in execution. These risks can take many forms — automated discovery of system vulnerabilities, malicious source-code interference, attacks aimed at software supply chains and coordinated intrusions that can evolve in real time to evade detection. “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”, said the Union Finance Minister.
With the increasing use of technology, there is an explosion of fake investment videos and apps circulating on social media, many of them using deepfake AI to impersonate leaders, the Union Finance Minister further stated.
In this context, FM. Sitharaman said that SEBI has done commendable good work with the Cybersecurity and Cyber Resilience Framework that came into effect in April 2025. This is a solid foundation on which more work can be undertaken, she added.
The Finance Minister informed that SEBI’s Data Analytics and Digital Forensics Laboratory is using advance analytics, AI/ML models to detect complex market manipulation patterns and network-based frauds.. Sitharaman also commended SEBI for rolling out “SEBI Check”, which allows investors to verify the payment details of registered intermediaries before transferring money. “These are important interventions, and they should be expanded with urgency and visibility”, she said and urged SEBI to invest very substantially in public awareness, through campaigns on every major platform in regional languages, and through rapid-response takedown mechanisms for fraudulent content impersonating public officials.
FM. Sitharaman also said that soft-touch regulation approach and public consultation are essential for economic efficiency and effective governance. Principles-based regulation should be encouraged as far as possible, rather than an overly detailed rulebook. In this context, the Finance Minister noted that Union Budget 2023 explicitly stated that public consultation would be integrated into the regulatory process to improve the quality and ease of compliance.
The Union Finance Minister appreciated SEBI’s pursuance of the consultative path, seeking public comments, engaging with committees and market participants.
