AI for live market surveillance lacks tools, say exchange officials
Officials from India's stock exchanges discussed AI's potential for market surveillance at Global Fintech Fest 2026. The goal is real-time monitoring and cancellation of illegal trades before market close, but suitable tools are not yet available.
Representatives from India's National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have indicated that artificial intelligence (AI) could transform real-time market surveillance, though suitable tools are currently absent. Sanjay Shorey, Executive Director at NSE, stated at the Global Fintech Fest 2026 that while AI holds significant potential for live market surveillance, no market-ready tools exist yet. He added that AI is already being employed in market investigations.
Ishan Bansal, Co-founder and CFO of Groww, raised the question of whether AI could detect and cancel illegal trades in near real-time before market closure. Current surveillance practices are typically post-activity. Gopalan S. Raghavan, Executive Director at BSE, highlighted that existing rule-based investigations are too narrow, lacking a holistic market view and failing to identify the triggers behind actions. He emphasized the need to understand the context, originating information, and parties involved in trades.
India's Securities and Exchange Board (SEBI) is also exploring AI for its surveillance and investigation processes. SEBI's Executive Director Aliasgar Mithwani acknowledged that AI is in its nascent stage but can help identify abnormal trading patterns. However, he stressed that human intellect remains crucial and AI should serve as an assistant, not a replacement.
The discussion also touched upon the creation of a co-owned sandbox environment for regulators and technology firms to test AI solutions responsibly. Concerns were raised about AI-related risks, such as deepfakes, which could destabilize markets and reduce liquidity if not promptly verified.