Securities and Exchange Board of India (SEBI) announces its plans to use artificial intelligence and machine learning solutions to boost its surveillance and investigative capabilities considerably.
The statutory body has decided to invest a massive chunk of money in upgrading its technologies for improving its operations. SEBI’s annual report mentioned that in the coming years, it would make major information technology changes and adopt new technologies to enhance its day-to-day operations like policy-making and regulating the market.
According to the report, various artificial intelligence machine learning rule-based algorithms will be used by SEBI and will be implemented for analyzing unstructured data on its data lake platform.
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SEBI officials said, “SEBI will also perform external penetration testing of public domain websites of MIIs and select securities market intermediaries in order to proactively advise these entities on strengthening their cybersecurity.”
In recent years, the number of cyberattacks in the financial market has increased drastically that has given rise to more fraudulent activities. SEBI wants to put a check on these illegal actions by improving the cybersecurity of public domain websites.
The regulatory body mentioned that these new technologies would be used by various departments of SEBI to maintain a healthy financial market environment. SEBI will use artificial intelligence systems to train human intelligence algorithms that would refine its fraud detection system. The body has already established a separate department for the automation of mutual funds.
SEBI said, “The division aims to add new alerts and cover the entire gamut of quantitative aspects of inspections. Further, in-spirit violations would also be identified and added for surveillance.” The new technologies adopted by SEBI will have the capability of detecting complex manipulation techniques used by fraudsters.