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SEBI Advises Brokers to Exercise Caution Against Stock Market Manipulations

In recent times, the idea of Artificial Intelligence has taken a wider market, though it has been in the market for many years.

Kalesh Chandra Varshney the member of SEBI warns people about the manipulation in the stock market. He has also claimed that SEBI is using AI for investigation. To ensure the security of regulated entities, SEBI will soon introduce a framework for cyber security and resilience. As Varshney confirmed, this framework will be mandatory for all regulated entities. Based on the reports by the ANMI President Vijay Mehta more than 5.4 million individuals became new investors in the market last month. He also mentioned that the group is dedicated to prioritizing sustainability, technology, inclusion and transparency in the financial and investment sector.

At an event held in New Delhi, SEBI whole-time member Kamlesh Chandra Varshney warned against fraudulent activities in the capital market and urged brokers to remain vigilant and prevent such incidents. He also informed that the Securities and Exchange Board of India (SEBI) is using Artificial Intelligence (AI) for its investigations.

It has been witnessed that the securities market has seen a significant increase in investor participation, which plays a crucial role in the development of the country. The number of demat accounts will increase to 13.9 crore by the end of December 2023, a growth of 20% in nine months and doubling in two and a half years.

Varshney stressed the importance of investor confidence, saying that without it, everything would fail. He admitted that rigging is going on and SEBI cannot interfere in all this. He also pointed out that some brokers may be involved, and it is important for the broker community to monitor and stop such activities.

To deal with fraudulent activities, SEBI has been taking action against various entities, including those involved in front-running activities. Speaking at the 13th International Conference of the Association of National Exchange Members of India (ANMI), Varshney stressed the need for institutions to adopt technological advancements to enhance efficiency and business operations.

When asked if SEBI is using AI, Varshney confirmed that they are using it for investigation and other purposes. He also pointed out that as long as the market is transparent and free from manipulation, the regulator is satisfied.

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