India needs better and not bigger markets, Finance Minister Nirmala Sitharaman said on Saturday, calling on market regulator Sebi as well as regulated entities to remain vigilant, at a time technology is rapidly advancing, usage of Artificial Intelligence (AI) is rising and cybersecurity has become an ever important issue.
“A single successful cyber attack on a major exchange or a depository or a clearing corporation or large broker could disrupt markets at national scale, erase wealth and shape public confidence in ways that take years to reveal,” said Sitharaman.
She pointed AI-led tools were making cyber attacks faster, adaptable and scalable, and risks can take any forms like automated discovery of system vulnerabilities.
” 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 defense must evolve even faster,” urged Sitharaman.
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The cyber security and cyber resilience framework that came into effect in April 2025 was a solid foundation on which more work could be undertaken, she felt.
Sitharaman’s comments come at a time there is growing concern world over around Anthropic’s Claude Mythos model, claimed to be the most advanced AI model on cyber security.
On Thursday, the finance minister had also convened a a high-level meeting with heads of various banks to understand the potential cyber security risks with Mythos.
Sitharaman noted that there has been an explosion of fake investment videos and apps circulating on social media, many of them using deep fake AI to impersonate popular personalities.
She said it was commendable that Sebi rolled out a check system which allowed investors to verify the payment details of registered intermediaries before transferring money. She added that these were important interventions and should be expanded with “urgency and visibility.”
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“I urge SEBI to invest very substantially in public awareness through campaigns on every major platform in regional languages and through rapid response takedown mechanisms for fraudulent content impersonating public officials,” stressed Sitharaman.
Speaking at the 38th foundation day of Sebi, she called for further deepening of bond markets and felt there was a serious need to push municipal bonds.
” India’s cities are central to growth but urban infrastructure cannot be financed sustainably that is, through budgetary resources alone,” Sitharaman pointed.
She also stressed on simplifying the kYC (know your customer) process and said there was a need a seamless, secure and a portable KYC experience across the financial sector.
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