SEBI Issues AI Cybersecurity Advisory for Market Entities

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.