SEBI Forms Cyber-Suraksha.ai Task Force To Address AI-Linked Cyber Risks

The Securities and Exchange Board of India (SEBI) has set up a task force named cyber-suraksha.ai to examine cybersecurity risks linked to artificial intelligence tools and improve cyber resilience across the securities market ecosystem. The decision was communicated through a circular issued on Tuesday.

SEBI said the use of AI-based vulnerability detection tools has introduced new risks for regulated entities, including faster identification and possible exploitation of system weaknesses. The regulator noted concerns around data confidentiality, application integrity, and the reliability of outputs from such tools. SEBI said the securities market structure is interconnected and requires coordinated vulnerability management, information sharing, and monitoring to reduce system-wide impact from cyber incidents. The task force includes representatives from market infrastructure institutions, registrars and transfer agents, and other regulated entities.

The group will assess risks from AI models and prepare mitigation measures, along with frameworks for threat intelligence sharing and response practices. SEBI also directed entities to report cyber incidents promptly, apply security patches, conduct audits, and strengthen API security and monitoring systems.