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Sebi Warns of Advanced AI Cyber Threats
India's market regulator, Sebi, warned on Tuesday about the growing threat from advanced Artificial Intelligence (AI) tools in cybersecurity. The regulator pointed out that AI systems can quickly scan for and identify system weaknesses. These tools could be exploited to compromise financial markets, affecting data privacy and operational stability.
Boosting Defenses Across Market
Sebi stressed that the Indian securities market is interconnected, meaning a cyberattack on one firm could impact many others. Because of this, Sebi is requiring all regulated firms to significantly upgrade their cybersecurity defenses. This includes enhancing monitoring systems and improving collaboration among market participants to share threat information and manage risks together.
New Task Force 'Cyber-Suraksha.ai' Formed
To address these threats, Sebi has established a new task force called 'cyber-suraksha.ai.' It includes members from major market institutions, registrars, and transfer agents. The task force will evaluate AI-related cybersecurity risks, develop strategies to reduce these risks, help share important threat information, and examine the security of third-party service providers.
Sebi's Advisory: Key Security Steps
Sebi also issued a detailed advisory with immediate and medium-term actions. Recommendations include timely system updates, regular checks for vulnerabilities (using AI tools if helpful), strong API security, and better monitoring via Security Operations Centres (SOCs). Firms should speed up integration with the Market-SOC framework, adopt advanced security like zero-trust, and harden systems to reduce attack areas. The advisory also suggests developing long-term plans to use AI for threat detection and response, and working with vendors for software updates.