Summary of this article
FM Sitharaman lauded SEBI’s 38-year milestone and its success in boosting retail market participation.
She launched the ‘Jagrook’ campaign to protect investors from sophisticated, AI-driven cybersecurity threats.
The Minister urged regulators to prioritize market integrity and simplify KYC processes for citizens.
Finance Minister Nirmala Sitharaman highlighted the various achievements of the Securities Exchange Board of India (Sebi) at the 38th Foundation Day event of the market regulator. While Sitharaman lauded Sebi for undertaking the transformation of the capital market and for spurring a boom in retail participation, she stressed the need for addressing emerging challenges with intellectual honesty.
She added that the most pressing challenge for Sebi happens to be cybersecurity. In order to address the issue, Sitharaman announced the launch of a new investor awareness-focused campaign called ‘Jagrook’.
What Sitharaman Said About Enhancing Cybersecurity
Sitharaman mentioned that even one cyber-attack 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 can take years to rebuild.
Sitharaman stressed that the threat is bigger than before with the adoption of AI-led tools, which make cyberattacks ‘faster, more adaptive, scalable’. In her address, the Minister stressed that cybersecurity risks can manifest in multiple ways, such as automated discovery of system vulnerabilities, malicious source-code interference, attacks aimed at software supply chains and coordinated intrusions that can evolve in real time to evade detection.
“Therefore, not just SEBI but all Regulated Entities will have to remain exceptionally vigilant. The tools of attack are evolving at high speed, and the tools of defence must evolve even faster,” Sitharaman said.
Sitharaman also mentioned the steps taken by Sebi to enhance cybersecurity, such as the enforcement of the Cyber Resilience Framework, which came into effect in April 2025. The market watchdog’s Data Analytics and Digital Forensics Laboratory uses advanced analytics and AI/ML models to identify complex market manipulation patterns and network-based fraud.
Sitharaman also spoke about the ‘Sebi Check’ feature, which allows investors to verify the payment details of registered intermediaries before transferring money. And other measures which help investors in avoiding fake and fraudulent investment videos and apps circulating on social media, which often use deepfake AI to impersonate leaders.
Need For Soft Touch Regulation
Sitharaman also talked about enhancing other aspects of the regulatory framework to benefit investors. She highlighted the need for a ‘soft-touch regulation approach’ and public consultation and urged Sebi to institutionalise more frequent and more substantive periodic consultations with its global counterparts and leading market participants. The finance minister stressed the need for a seamless, secure, and portable KYC experience across the financial sector and for deepening the corporate bond market.
Sitharaman Applauds Sebi’s Achievements
Sitharaman congratulated the market regulator for undertaking the transition to a T+1 settlement cycle for all listed securities, pioneering the Applications Supported by Blocked Amount (ASBA) mechanism for initial public offerings (IPOs), enabling IPO applications via UPI and keeping IPO activity buoyant during FY 2025-26 with a record number of 366 public issues, facilitating fundraising of around Rs 1.9 lakh crore. Sitharaman concluded her address by stressing the need for better markets and not just bigger markets.
“But above all, we want better markets, not merely bigger markets. Size without integrity is fragility. Volume without investor protection is exploitation. Growth without governance is unsustainable. And ensuring that is definitely a shared national priority and responsibility,” Sitharaman said.
