In a packed session at the 16th ANMI International Capital Market Convention, Pandey outlined a multi‑layered framework focusing on terminal misuse. The proposal will differentiate compliance thresholds for firms with assets under ₹1,000 crore, those between ₹1,000 crore and ₹5,000 crore, and the largest players. Under the scheme, smaller brokers would face fewer reporting obligations, while larger firms would undergo stricter audits and real‑time monitoring. The goal is to tighten control without stifling growth.
Central to the plan is a single digital inspection portal that will consolidate all supervisory data. Brokers will upload terminal logs and transaction records, allowing regulators to spot irregularities instantly. The portal will also host an AI‑driven anomaly detection module, a feature that Pandey said will reduce manual review time by 40 percent.
Sebi is also developing an AI sandbox where fintechs can test new tools under controlled conditions. The sandbox will enforce kill switches, data‑control protocols, and human oversight, mirroring IOSCO’s guidelines. According to Pandey, the sandbox will provide a safety net for innovations that could otherwise expose investors to systemic risk.
Beyond technology, the regulator is pushing for deeper secondary markets. A market‑making framework for corporate bonds is in draft form, while the next phase of Demat 2.0 will see tokenised bonds trade in the secondary market. Pandey said the move will lower settlement risk and improve liquidity for issuers and investors alike.
The chairman also warned brokers to treat cybersecurity as a core business priority. He urged firms to conduct regular penetration tests and to view KYC as an ongoing conversation rather than a one‑off task. "A broker who knows a client’s risk appetite can better match products and protect the client’s capital," Pandey said.
Implementation is expected to roll out in early 2027, with a phased launch that will begin with the top 50 brokerage firms. The regulator will convene a working group of industry leaders, and a detailed guideline is slated for release by July 2026.