The Securities and Exchange Board of India (SEBI) is working on a graded compliance framework for stockbrokers, a regulatory sandbox for artificial intelligence (AI) applications and a market-making mechanism for corporate bonds, Chairman Tuhin Kanta Pandey said on Saturday in Mumbai, IANS reported. ANI, in a separate report, said SEBI is exploring the graded framework based on a broker's scale, client exposure and reliance on technology.
Source: IANS via hi INDiA
Addressing the 16th ANMI International Capital Market Convention in Mumbai, Pandey said SEBI was examining a compliance regime that would vary according to a broker's scale, client exposure and reliance on technology. "For stockbrokers, we are exploring graded compliance. It would reflect your scale, your client exposure, and your reliance on technology," he said, according to ANI. IANS quoted him as saying, "We are fixing this to improve capital efficiency and lower the compliance burden."
Source: ANI via Indian Economic Observer
The regulator is also developing a market-making framework to boost secondary market trading in corporate bonds. Under the next phase of Demat 2.0, tokenised corporate bonds will be allowed to trade in the secondary market, a move Pandey said will improve liquidity, reduce settlement risks and speed up access to funds, according to both reports.
Source: IANS via hi INDiA
AI sandbox and responsible-use guidelines
SEBI is further exploring an AI sandbox that would allow new tools to be tested in a controlled environment while giving regulators an opportunity to build safeguards around their use, IANS reported. Pandey said the regulator was finalising guidelines on the responsible use of AI based on a tiered framework that would include accountability standards, data controls, kill switches and human oversight, in line with recommendations from the International Organization of Securities Commissions (IOSCO).
Source: IANS via hi INDiA
Pandey also said SEBI would extend the automated give-up and take-up facility in the cash segment to custodial clients such as portfolio management services (PMS) and alternative investment funds (AIFs), reducing the need to block funds while awaiting custodian confirmation, IANS reported.
Source: IANS via hi INDiA
Cautioning intermediaries on cyber risks, Pandey urged firms to prioritise resilience, ANI reported: "Please treat cybersecurity as a business priority, not an IT expense. Test your systems. Plan for failure." The proposals described are frameworks SEBI says it is exploring or developing; final rules will follow SEBI's own notifications.
Source: ANI via Indian Economic Observer
Sources: IANS via hi INDiA and ANI via Indian Economic Observer and NewKerala, all on October 24, 2026, reporting SEBI Chairman Tuhin Kanta Pandey's address at the ANMI convention in Mumbai.
Source: IANS via hi INDiA