Union Finance Minister Nirmala Sitharaman on Saturday, 25 April, cautioned market regulator SEBI and all regulated entities to significantly strengthen cybersecurity frameworks, warning that evolving global threats could disrupt financial markets at a national scale.
Addressing the 38th Foundation Day of SEBI in Mumbai, Sitharaman highlighted cybersecurity as the most pressing emerging challenge for financial markets, according to a statement by the Ministry of Finance.
She stated that even a single successful cyberattack on a major exchange, depository, clearing corporation or large broker could disrupt markets at a national scale, erase wealth, and shake public confidence in ways that take years to rebuild.
She underscored that cyber threats are rapidly evolving with the use of artificial intelligence, making attacks faster, more adaptive and increasingly autonomous.
These include automated vulnerability detection, malicious source-code interference, software supply chain attacks and coordinated intrusions that can evade detection in real time.
“Therefore, not just SEBI, but all regulated entities will have to remain exceptionally vigilant. The tools of attack are evolving at high speed, and the tools of defence must evolve even faster,” Sitharaman said.
The Finance Minister also pointed to the growing spread of fraudulent investment content, including fake videos and apps on social media using deepfake technology to impersonate leaders.
While acknowledging SEBI’s Cybersecurity and Cyber Resilience Framework implemented in April 2025 as a strong foundation, she emphasised the need to scale up efforts further.
She also noted the role of SEBI’s Data Analytics and Digital Forensics Laboratory, which uses AI and machine learning tools to detect complex market manipulation and fraud patterns.
Sitharaman called for expanded public awareness campaigns across platforms and regional languages, along with faster takedown mechanisms for fraudulent digital content.
The Finance Minister also stressed on the grievance redressal systems, that must remain credible, accessible, and timely.
