India’s Markets Regulator to Issue Advisory on Emerging AI Risks

India’s capital markets watchdog, the Securities and Exchange Board of India (SEBI), is preparing to issue an advisory addressing emerging risks linked to artificial intelligence tools, its chairman said on Monday.

The move comes as regulators globally grapple with the rapid adoption of AI across financial services. SEBI’s forthcoming guidance is expected to focus on potential risks arising from advanced AI systems, including tools such as Mythos developed by Anthropic.

According to the regulator, it is actively engaging with market participants and other stakeholders to better understand AI-driven threats and ensure appropriate safeguards are in place. The advisory will likely be directed at intermediaries such as brokers, asset managers, and other entities operating within India’s financial markets.

The initiative reflects growing concern over how AI technologies could impact market integrity, data security, and investor protection. As AI adoption accelerates, regulators are increasingly focused on balancing innovation with risk management to maintain stability in the financial ecosystem.