SEBI all for more crackdowns on Insider trading, optimal regulations and use of advanced technology

The Sebi Chairman, Mr. Tuhin Kanta Pandey once again harped on taking tougher stance on Insider trading - mentioning it will move beyond just corporate executives to include regulators and consultants who handle sensitive information. As per their reports, over last 1 year, SEBI has taken action against Regulatory officials, executives of Banks and Consulting firms, found guilty of such violations. Action will be taken against anyone having access to sensitive "price-sensitive" information - as per SEBI.

In another instance, in an interview with Indian Express, Mr. Pandey advocated for "optimal regulation"—meaning the rules should be "not too much, not too little, but just right." He stressed upon creating a market that is safe for retail investors while encouraging innovation and business growth. As per him, he likes to work on four principles — trust, transparency, teamwork and technology.

Finally, he mentioned the use of advanced technology by SEBI to fight financial fraud and misleading advice. SEBI uses an AI tool called "Sudarshan" to scan social media (Telegram, YouTube, Instagram) for "finfluencers" giving illegal investment advice. As per his claim, they are currently removing 7,000 rogue sites per month and have taken down 120,000 so far.

OUR VIEW: 

SEBI has confirmed at its board meeting that they are using AI to investigate and monitor the stock market. This move supports one of their core missions: protecting investors. By ensuring a fair market, SEBI helps strengthen the broader economy—a crucial step amid the current market slowdown driven by escalating tensions in the Middle East. Apart from adopting new technologies, SEBI's moves towards more reforms have come recently by way of introducing SMC Bill. Historically, we have seen that SEBI's Chairman doesn't only highlight issues, but also walks the talk. Hence, we can expect to see more investigations and prosecutions being launched against erring insiders in the next few months. Thus, Mr. Pandey's words carry a lot of weight. 
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Link - https://www.reuters.com/sustainability/boards-policy-regulation/india-watchdog-presses-banks-other-regulators-stricter-insider-trading-2026-03-02/

Link : https://indianexpress.com/article/business/tuhin-kanta-pandey-we-believe-in-optimal-regulation-not-too-much-not-too-little-10560113/