FM Sitharaman urges Sebi, regulated entities to stay vigilant on cybersecurity

Finance Minister Nirmala Sitharaman on Saturday urged the market regulator, the Securities and Exchange Board of India (Sebi), to be prepared to address emerging and evolving challenges such as cybersecurity.

“Sebi must also be ready to meet emerging challenges  - and the most pressing of these, in my view, is cybersecurity,” Sitharaman said.

“A single successful cyberattack on a major exchange, depository, clearing corporation, or large broker could disrupt markets on a national scale, erase wealth, and shake public confidence in ways that take years to rebuild,” she warned.

“AI-led tools are making cyberattacks faster, more adaptive, scalable, and in some cases more autonomous in execution. These risks can take many forms — automated discovery of system vulnerabilities, malicious source code interference, attacks on software supply chains, and coordinated intrusions that can evolve in real time to evade detection,” she said.

“Therefore, not just Sebi, but all regulated entities will have to remain exceptionally vigilant,” she added. “The tools of attack are evolving at high speed, and the tools of defence must evolve even faster.”

Speaking to market participants, Sebi officials, and staff at Sebi’s 38th Foundation Day, she said, “Sebi should institutionalise more frequent and more substantive periodic consultations with its global counterparts and leading market participants on emerging issues such as cross-border fraud, the use of AI in markets, sustainable finance disclosures, and settlement interoperability.”

“A soft-touch regulatory approach and public consultation are essential for economic efficiency and effective governance,” Sitharaman added.

Prior to the Finance Minister’s address, Sebi Chairman Tuhin Kanta Pandey said industry participants must move beyond compliance to a deeper commitment to fairness, integrity, and innovation.

“Intermediaries must recognise that they are often the first point of trust for investors. Investors themselves must remain aware and responsible in their participation,” he said.

India now has over 5,900 listed companies and more than 140 million unique investors. Over the last decade, market capitalisation has grown at around 15% CAGR, while mutual fund assets have expanded at over 20% annually.

During FY2025–26, IPO activity remained buoyant, with a record 366 IPOs facilitating capital raising of around ₹1.9 lakh crore.