The Securities and Exchange Board of India (SEBI) has announced the constitution of a Working Group to formulate a comprehensive technology roadmap for Market Infrastructure Institutions (MIIs). This initiative responds to the rapid evolution of digital technologies and their growing importance in securities market operations, surveillance, and regulatory oversight. The roadmap will cover both short-term (five years) and long-term (ten years) horizons, ensuring sustained technological preparedness of Indian market infrastructure.

Key Developments and Scope

• The Working Group will adopt a forward-looking and holistic approach to technology adoption by MIIs.
• Focus areas include the use of advanced and emerging technologies such as:
  • Artificial Intelligence and Machine Learning
  • Distributed Ledger Technology
  • Cloud computing frameworks
  • SupTech and RegTech solutions
  • Tokenisation
  • Quantum-safe systems
• The objective is to strengthen market operations, surveillance mechanisms, risk management systems, and investor protection frameworks.

Composition of the Working Group

• The Group is chaired by Dr. D. B. Phatak, Professor Emeritus, IIT Bombay.
• Members include:
  • Chairpersons of Standing Committees on Technology of MIIs
  • Senior officials from stock brokers and Registrars and Transfer Agents
  • Technology specialists and securities market experts
• The diverse composition is intended to balance regulatory, operational, and technological perspectives.

Implications for Market Infrastructure Institutions

• MIIs may need to reassess their existing technology strategies in light of evolving regulatory expectations.
• The roadmap is expected to influence future investments in digital infrastructure and cyber resilience.
• Greater emphasis on data integrity, system resilience, and advanced surveillance tools is likely.
• Institutions will need to align governance frameworks with increased technology dependence.

Governance and Regulatory Impact

• The initiative signals SEBI’s intent to proactively guide technological transformation rather than react to disruptions.
• Adoption of advanced technologies under regulatory guidance can improve market stability and systemic resilience.
• Enhanced regulatory and supervisory technologies may result in higher compliance and monitoring standards for MIIs.

Key Takeaways

• SEBI’s Working Group marks a strategic step towards future-proofing India’s securities market infrastructure.
• MIIs should closely monitor developments emerging from the proposed technology roadmap.
• Early alignment of technology planning with regulatory direction will be critical for long-term resilience and competitiveness.