SEBI To Issue AI Rules For Markets, F&O Trading, CAS & SME IPOs Under Regulator’s Watch

SEBI is set to issue new guidelines for the responsible use of artificial intelligence and machine learning in capital markets. SEBI Chairperson Tuhin Kanta Pandey said the framework will focus on accountability, governance, data controls, human oversight and kill-switch mechanisms. Business Today’s Nachiket Kelkar explains how the regulator is also monitoring the new Closing Auction Session, or CAS, amid concerns over unusual price movements. SEBI is also expected to release its FY26 study on equity derivatives trading, covering retail participation and investor losses. The regulator is reviewing the SME IPO framework as well, with investor protection and market integrity remaining key priorities.