Sebi to soon roll out AI rules with a ‘kill switch’ for stock market
Economic Times 1 hr ago·19 Aug 2026, 9:13 am
India's securities regulator, Sebi, is set to introduce new rules governing the use of Artificial Intelligence (AI) in the stock market. The framework will mandate strict safeguards for regulated entities, including a mandatory 'kill switch' to halt AI systems during errors and ensure human oversight of automated decisions.
This move aims to balance the rapid adoption of AI for tasks like surveillance and fraud detection with the need for investor protection. By enforcing accountability, Sebi hopes to mitigate risks associated with algorithmic trading and ensure that technology serves the market's stability.
Investors should monitor how these guidelines are implemented. While the focus is on risk management, the rules could influence how technology is deployed across the broader market, potentially affecting trading platforms and surveillance systems in the long run.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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