SEBI Chief Asks Public Interest Directors To Treat System Failures As Financial Irregularities
The Securities and Exchange Board of India (SEBI) Chairman, Tuhin Kanta Pandey, urged Public Interest Directors (PIDs) on the Boards of market infrastructure institutions (MIIs) to treat system failures as financial irregularities.
Speaking at the PIDs Conclave, he emphasised that PIDs should understand emerging technologies and ensure critical operations and compliance functions are adequately resourced. Pandey highlighted that while SEBI supports the use of AI and machine learning tools, safeguards must protect investor data privacy and security. He advised PIDs to exercise independent judgement, hold separate meetings from management, and report identified risks to SEBI. The regulator also stressed the importance of properly recording interventions in board meetings and strengthening governance through checks and balances. Technology frameworks now receive the highest weightage in independent evaluations of MIIs.




