SEBI Is Using AI For Investigations, Says Whole Time Member Kamlesh Chandra Varshney

While speaking at the convention, he also warned against manipulative practices in the capital market and urged brokers to remain vigilant and prevent such occurrences

The Securities and Exchange Board of India’s (SEBI) Whole Time Member Kamlesh Chandra Varshney said on Saturday that the organisation has implemented Artificial Intelligence (AI) for conducting investigations. He stressed on the importance of entities staying in sync with technological advancements. Amid concerns about market manipulations, Varshney underscored the benefits of adhering to regulations, cautioning that violations could lead to issues. 

Responding to a query from the news agency PTI regarding SEBI's use of AI, Varshney confirmed its application in investigations and other areas. He made these remarks during the sidelines of the 13th international convention of the Association of National Exchanges Members of India (ANMI) in the national capital. Varshney emphasised the significance of market transparency and preventing manipulation from the regulator's standpoint. 

While speaking at the convention, he also warned against manipulative practices in the capital market and urged brokers to remain vigilant and prevent such occurrences. Taking firm action against wrongdoing, the market watchdog has been cracking down on various entities for manipulative activities, including front running. 

Stressing the importance of investor trust, Varshney remarked that without it, everything would fail. He acknowledged ongoing manipulations and highlighted SEBI's inability to address all instances. Varshney emphasised the need for vigilance within the broker community, as some brokers may be involved, urging them to monitor closely to prevent any adverse impacts. 

SEBI has been actively cracking down on offenders and implementing measures to foster transparency while curbing misconduct.

Last year, placing significant emphasis on technology, SEBI said it plans to introduce a Geotagging solution within the current financial year to enhance its enforcement activities. Concurrently prioritising technological advancements, SEBI announced its intention to initiate several projects aimed at improving its information technology (IT) capabilities and constructing a "fault-tolerant" architecture.

"In the coming year, SEBI plans to implement a Geotagging Solution to strengthen the process of its enforcement activities," said the regulator in its annual report for 2022-23.