India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), is preparing to release an advisory warning market intermediaries about emerging risks linked to artificial intelligence tools, including systems such as Anthropic Mythos. According to the regulator’s chairman, SEBI is actively engaging with key stakeholders to assess potential vulnerabilities arising from the growing use of AI in financial markets. The advisory is expected to focus on issues such as data reliability, algorithmic bias, market manipulation risks, and over-reliance on automated decision-making systems. Authorities are particularly concerned about how advanced AI tools could influence trading behavior and risk assessment processes if left unchecked. SEBI’s move reflects a broader effort to balance innovation in financial technology with investor protection and market stability, as AI adoption accelerates across India’s financial ecosystem.
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