Mumbai: Market regulator Sebi is considering the use of artificial intelligence and other advanced technology to curb market manipulation, its chairman Ajay Tyagi said Thursday.
In his address at the SEBI-NISM Research Conference on ‘Changing Landscape of SecuritiesMarket’ here, he said that Sebi has already planned “Data Lake” project to augment analytical capability with advanced analytical tools.
“Social media platforms are increasingly being used by manipulators for market manipulation. Regulators worldwide are increasingly acknowledging that there is much more surveillance input that can be gained from such social media platforms than that can be gained from analysis of structured data,” Tyagi said.
Besides, he added that the application of AI/ML and blockchain tools has the potential to bring a paradigm shift in the securities markets landscape.
“Amongst other applications, blockchain could be used in clearing, settlement and record-keeping given its benefits in maintaining records in distributed ledgers, while still being a single source of truth,” Tyagi said.
The Sebi boss also highlighted the need to effectively manage systemic risks financial market regulators worldwide. Systemic risk monitoring, he said, requires continuous identification and monitoring of systemically important financial institutions.