Securities and Exchange Board of India chairman Tuhin Kanta Pandey has emphasized the critical nature of artificial intelligence-driven cybersecurity threats in India’s financial markets. Addressing concerns during an interaction with NDTV Profit, Pandey pointed out that the focus is currently on cybersecurity vulnerabilities posed by AI tools rather than risks associated with market manipulation or algorithmic trading.
Pandey underscored the heavy reliance of financial markets on software systems, warning that any cybersecurity weaknesses could jeopardize market integrity if exploited successfully. He stressed the necessity for robust protective measures across all software utilized in financial markets, including those from third-party vendors.
Highlighting the importance of proactive security measures, Pandey called for stringent protection mechanisms, aggressive patch management, and continuous vulnerability assessments for all software deployed in financial markets. He emphasized the immediate patching of any identified weaknesses to prevent potential threats to market integrity.
The chairman’s comments come amidst growing global and domestic apprehensions regarding the increasing sophistication of AI systems capable of exploiting software vulnerabilities. Recent regulatory focus has been on Anthropic’s Mythos AI model, known for autonomously identifying and exploiting vulnerabilities in major operating systems and internet browsers.
Union Finance Minister Nirmala Sitharaman had previously expressed concerns about the risks associated with Mythos, reflecting broader worries within the regulatory landscape about the potential implications of advanced AI systems on cybersecurity.
