The Securities and Exchange Board of India (SEBI) is working on a comprehensive framework to govern the use of artificial intelligence (AI) in the capital markets ecosystem, its chief Tuhin Kanta Pandey said on Friday. "AI will be an important part of our regulatory agenda. AI can improve surveillance, risk assessment, fraud detection, and investor servicing. But it also brings risks relating to opacity, bias, data protection, cybersecurity, and accountability. SEBI will issue detailed guidelines on the responsible use of AI in capital markets," Pandey said. He was speaking at the ET NOW Markets Summit 2026.