SEBI broker rules are being developed to prevent misuse of trading terminals provided by brokers, Chairman Tuhin Kanta Pandey said at a broker event on October 24, 2026.

SEBI broker rules target terminal safeguards

Pandey said India’s Securities and Exchange Board was developing a framework to put safeguards in place. He did not provide a timetable or specify the measures the framework would contain.

Speaking at an event organised by the Association of National Exchanges Members of India, he also urged the market ecosystem to treat cybersecurity as a business priority rather than an information technology expense.

Compliance and AI measures under consideration

SEBI is considering a graded compliance system for brokers that would reflect their scale, client exposure and reliance on technology, Pandey said. The regulator is also exploring an artificial intelligence sandbox where new tools could be tested safely.

Pandey said guidelines on responsible AI use were being finalised. They would take a tiered approach covering accountability, data controls, kill switches and human oversight, in line with the International Organization of Securities Commissions’ toolkit.

He also announced plans to bring inspection portals into a single digital workflow, intended to make supervision faster and more consistent.

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