Mumbai, May 18: Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), has stated that artificial intelligence (AI)-based cybersecurity threats are emerging as one of the biggest risks to India’s financial markets. He emphasized the need for aggressive measures to enhance the security of software systems used in market operations.
In an interview with NDTV Profit, Pandey expressed that the primary concern regarding AI tools is not market manipulation or algorithmic trading, but rather vulnerabilities in cybersecurity.
He noted that financial markets heavily rely on software systems, and any weakness in the cybersecurity framework could be exploited, posing a serious threat to market credibility.
“Recently, most concerns surrounding AI tools are related to cybersecurity. As you know, markets largely depend on software systems. If cybersecurity weakens or flaws are found in the software, the risk of cyberattacks increases. Successful attacks could severely damage market credibility,” he stated.
Pandey stressed the necessity for robust security measures for all software used in financial markets, especially those provided by third-party vendors.
He added, “Regulators and all stakeholders in the market must ensure strong security systems, aggressive patch management, and continuous vulnerability assessments.”
Furthermore, he emphasized the importance of ensuring that all software systems in use are completely secure. The widespread use of traditional security tools for identifying vulnerabilities and timely security updates is crucial.
His comments come at a time when concerns are rising globally about rapidly evolving AI systems, which are believed to be increasingly capable of exploiting software vulnerabilities.
Recently, regulatory concerns have also been raised regarding Anthropic’s Mythos AI model, which reportedly can identify and exploit vulnerabilities present in major operating systems and internet browsers.
Earlier, Finance Minister Nirmala Sitharaman also expressed worries about the potential threats associated with Mythos AI.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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