Key Points
- Single cyberattack on exchange or depository could disrupt markets at national scale
- SEBI launched Mission Jagrook investor awareness initiative across India
- AI-powered attacks are faster, more adaptive and can evade detection in real time
A single successful cyberattack on a major stock exchange, depository or clearing corporation could disrupt Indian markets at national scale, erase wealth and shake public confidence for years, Union finance minister Nirmala Sitharaman warned on Saturday.
Speaking at the Securities and Exchange Board of India’s 38th Foundation Day in Mumbai, Sitharaman identified cybersecurity as the most pressing challenge facing the regulator and the broader financial system.
The warning comes as retail investor participation in Indian markets has reached record levels, with over 15 crore demat accounts now active. Any systemic disruption would directly affect millions of households that have entered the markets in recent years, many of them first-time investors.
Sitharaman said artificial intelligence tools are making cyberattacks faster, more adaptive and, in some cases, autonomous in execution. These risks take many forms, she noted, including automated discovery of system vulnerabilities, malicious interference with source code, attacks aimed at software supply chains and coordinated intrusions that evolve in real time to evade detection.
“Not just SEBI, but all regulated entities will have to remain exceptionally vigilant,” Sitharaman said. “The tools of attack are evolving at high speed, and the tools of defence must evolve even faster.”
Deepfakes and fraudulent investment schemes
The finance minister flagged a sharp rise in fake investment videos and applications circulating on social media. Many of these use deepfake technology, which employs AI to create convincing but fabricated video footage, to impersonate public figures and lure unsuspecting investors.
She urged SEBI to invest substantially in public awareness campaigns across every major platform and in regional languages. The regulator should also establish rapid-response mechanisms to take down fraudulent content impersonating public officials, she added.
Sitharaman noted that SEBI’s Cybersecurity and Cyber Resilience Framework, which came into effect in April 2025, provides a foundation for further work. The regulator’s Data Analytics and Digital Forensics Laboratory now uses AI and machine learning models to detect complex market manipulation patterns and network-based frauds.
She also highlighted SEBI Check, a tool that allows investors to verify the payment details of registered intermediaries before transferring money. “These are important interventions, and they should be expanded with urgency and visibility,” she said.
Mission Jagrook launched
Sitharaman digitally launched SEBI’s nationwide investor awareness initiative, Mission Jagrook, at the event. The programme aims to educate retail investors about market risks and help them identify fraudulent schemes before committing funds.
The finance minister said the regulator’s actions against unregistered financial influencers signal the seriousness with which SEBI views unlicensed financial advice. India needs enabling frameworks for responsible financial education, she said, but should not tolerate the exploitation of uninformed retail investor trust.
On regulatory approach, Sitharaman advocated for principles-based regulation rather than detailed rulebooks. She noted that the Union Budget 2023 committed to integrating public consultation into the regulatory process to improve compliance quality.
Grievance redressal systems must remain credible, accessible and timely, she added, as trust in markets depends not only on returns but on the assurance that wrongs can be addressed fairly.
“Our investors are global, our issuers engage international pools of capital and regulatory developments in one major jurisdiction increasingly influence market practice far beyond its borders,” Sitharaman said. Regulatory conversations cannot remain only domestic, she added.
Your Questions, Answered
What is Mission Jagrook launched by SEBI?
Mission Jagrook is SEBI's nationwide investor awareness initiative launched on 25 April 2026. The programme aims to educate retail investors about market risks and help them identify fraudulent investment schemes before committing funds.
What cybersecurity threats did Sitharaman identify for Indian markets?
Sitharaman identified AI-powered cyberattacks as the gravest threat, including automated vulnerability discovery, malicious source code interference, software supply chain attacks and coordinated intrusions that evolve in real time to evade detection.
What is SEBI Check and how does it help investors?
SEBI Check is a tool that allows investors to verify the payment details of registered intermediaries before transferring money. It helps prevent fraud by enabling investors to confirm they are dealing with legitimate, SEBI-registered entities.
What action has SEBI taken against deepfake investment scams?
SEBI has implemented a Cybersecurity and Cyber Resilience Framework effective April 2025. The regulator also operates a Data Analytics and Digital Forensics Laboratory using AI to detect manipulation. Sitharaman urged expanded public awareness campaigns and rapid takedown mechanisms for fraudulent content.
