Mumbai, February 2026 —In a significant move to modernize India’s capital markets, the Securities and Exchange Board of India (SEBI) has announced a sweeping set of reforms targeting everything from “finfluencers” to Portfolio Management Services (PMS). SEBI Chairperson Madhabi Puri Buch and other officials detailed a future where artificial intelligence (AI) and comprehensive regulatory reviews will redefine market integrity.

The announcement signals a shift from reactive enforcement to proactive detection, aiming to stay ahead of increasingly sophisticated market manipulations.

AI: The New Sheriff on Dalal Street

SEBI is aggressively integrating AI tools to police the market. The primary focus is on identifying influencers and entities that “cross the line” into providing unauthorized investment advice. These AI systems are designed to track advertisements, monitor social media trends, and detect patterns indicative of insider trading.

By utilizing these tools, SEBI aims to identify risks before they manifest as major frauds, effectively shifting the regulatory posture from catching criminals to preventing the crime.

The “PMS” and “LODR” Overhaul

Following the successful review of mutual fund and stockbroker regulations, SEBI is now turning its attention to the Portfolio Management Services (PMS) and the Listing Obligations and Disclosure Requirements (LODR) regulations.

• Rationalization: The 2020 PMS regulations are being reviewed after six years to address industry and investor feedback.
• Transparency: SEBI plans to release a consultation paper once the proposals mature, allowing the public to weigh in on potential changes to “ticket sizes” and disclosure standards.
• LODR Review: The process for reviewing settlement regulations and listing obligations is currently ongoing, ensuring that corporate disclosures remain rigorous in a digital-first economy.

Collaborative Innovation: The Bond Index

In a joint effort with the Reserve Bank of India (RBI), SEBI is moving positively toward the launch of new bond index products. These products will be traded on exchanges, bringing them under SEBI’s jurisdiction while involving the RBI due to the underlying debt instruments. This initiative, highlighted in recent budget announcements, aims to deepen India’s debt market and provide more sophisticated tools for institutional investors.

Addressing “Bank Guarantee” Concerns

SEBI also acknowledged receiving representations from stockbrokers regarding RBI’s draft guidelines on bank guarantees for proprietary trading. The regulator is currently evaluating these concerns to ensure that banking domain changes do not inadvertently choke liquidity or funding for market participants.

Bottom Line

The era of manual market monitoring is ending. By combining AI-driven surveillance with a “rationalized” regulatory framework, SEBI is preparing the Indian market for its next phase of global growth. The message to “finfluencers” and market players is clear: the regulator is now watching in real-time.