SEBI Issues AI Cybersecurity Advisory for Market Entities

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  • Last Updated on 7 May, 2026

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SEBI AI cybersecurity advisory

Circular No. HO/13/19/12(1)2026-ITD-1_CIMGI/10873/2026, Dated 05.05.2026

The Securities and Exchange Board of India (SEBI) has issued an advisory highlighting emerging cybersecurity risks associated with AI-driven vulnerability detection tools, such as Mythos.

1. Constitution of Dedicated Task Force

SEBI has constituted a specialised task force named cyber-suraksha.ai

The task force comprises:

  • Market Infrastructure Institutions (MIIs)
  • SEBI-regulated entities

2. Objective of the Task Force

The initiative aims to:

  • Examine AI-related cyber risks in securities markets
  • Develop:
    1. Risk mitigation strategies
    2. Best practices for cybersecurity resilience

3. Key Areas Covered in the Advisory

The circular prescribes measures relating to:

3.1 Vulnerability Assessment

Regular identification and testing of:

  • System vulnerabilities
  • AI-enabled attack surfaces

3.2 API Security

Strengthening:

  • Authentication
  • Access controls
  • Monitoring of APIs

3.3 SOC Monitoring

  • Enhanced monitoring through Security Operations Centres (SOC)
  • Focus on real-time detection of AI-enabled threats

3.4 AI-Based Risk Management

  • Adoption of AI-aware cybersecurity governance frameworks
  • Managing risks arising from Automated threat discovery tools

4. Objective of the Advisory

The advisory seeks to:

  • Improve preparedness against sophisticated AI-driven cyber threats
  • Strengthen cyber resilience of financial market infrastructure
  • Promote coordinated industry response mechanisms

5. Conclusion

SEBI’s advisory reflects growing regulatory focus on the intersection of AI and cybersecurity, aiming to ensure that securities market institutions remain resilient against rapidly evolving digital threats.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied