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ARTICLE · 07 MAY 2026

Fortifying The Digital Frontier: SEBI’s Cybersecurity Advisory And NCCL’s Response To AI-Driven Threats

IndiaLaw LLP
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The rapid proliferation of advanced artificial intelligence tools capable of autonomously identifying and potentially exploiting cybersecurity vulnerabilities has compelled India’s financial regulators and market...

IndiaTechnology
Aditi Rana
Aditi Rana
Tanvi Dalvi
Tanvi Dalvi

Background and Regulatory Context

The securities market ecosystem in India encompasses a broad and interconnected network of market infrastructure institutions (“MIIs”), qualified registrar and transfer agents (“QRTAs”), stock exchanges, depositories, clearing corporations, mutual funds, portfolio managers, and other intermediaries.

The inherent interdependency among these participants creates a systemic vulnerability: a cyber breach at any one node may propagate cascading consequences across the entire market infrastructure. It is against this backdrop that NCCL and SEBI have issued their respective communications.

The SEBI circular expressly invokes SEBI’s statutory authority under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect investor interests and regulate the orderly functioning of securities markets.

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