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Union Finance Minister Nirmala Sitharaman on Friday warned of escalating cyber threats to India’s financial markets, urging regulators and market participants to strengthen defenses as she launched a nationwide investor awareness drive at the 38th foundation day of Securities and Exchange Board of India (SEBI).
Delivering the keynote address, Sitharaman said a single successful cyberattack on critical market infrastructure — including exchanges, depositories, clearing corporations or large brokerages — could trigger nationwide disruption, erode investor wealth and dent public confidence for years.
“The tools of attack are evolving at high speed, and the tools of defense must evolve even faster,” she said, pointing to the growing use of artificial intelligence in launching more adaptive and scalable cyber intrusions.
The minister formally launched ‘Mission Jagrook,’ SEBI’s nationwide investor awareness initiative, aimed at expanding financial literacy and protecting retail investors from rising digital frauds. She urged the regulator to significantly ramp up public outreach across platforms and in regional languages, alongside faster takedown of fraudulent online content impersonating public officials.
Her remarks come amid a surge in fake investment apps and videos on social media, many powered by deepfake technologies that mimic prominent personalities to lure investors.
Sitharaman acknowledged SEBI’s recent efforts to counter such risks, including its Cybersecurity and Cyber Resilience Framework implemented in April 2025. She also highlighted the regulator’s Data Analytics and Digital Forensics Laboratory, which deploys AI and machine learning to detect complex market manipulation and network-based frauds.
She cited tools like “SEBI Check,” which enables investors to verify payment details of registered intermediaries, as “important interventions” that need wider visibility and scale.
On regulatory philosophy, the finance minister reiterated the government’s preference for a “soft-touch” and consultative approach, favoring principles-based regulation over overly prescriptive rulebooks. She noted that public consultation has been embedded into the regulatory process since the Union Budget 2023 to improve compliance and governance outcomes.
“Our investors are global, and regulatory developments in one jurisdiction increasingly shape market practices elsewhere,” Sitharaman said, underlining the need for India’s regulatory engagement to extend beyond domestic boundaries.
She also stressed the importance of robust grievance redressal systems, saying market trust depends not only on returns but on the assurance of fair resolution of disputes. In this context, she backed SEBI’s crackdown on unregistered “fin-fluencers,” warning against the monetization of retail investor trust through unverified financial advice.
“We need enabling frameworks for responsible financial education, but we should not tolerate misuse of investor confidence for personal enrichment,” she said.
The minister further called for simplification and digitalization of Know Your Customer (KYC) norms across the securities market, urging SEBI to lead efforts in standardizing processes.
Speaking at the event, SEBI Chairman Tuhin Kanta Pandey highlighted the scale and growth of India’s capital markets, noting that the country now has over 5,900 listed companies and more than 140 million unique investors.
Market capitalization has expanded at an annual rate of about 15% over the past decade, while mutual fund assets have grown at over 20% annually, he said. The primary market continues to facilitate capital formation of nearly ₹10 trillion each year.
Pandey added that SEBI has pursued wide-ranging reforms over the past year aimed at simplifying regulations, resolving ambiguities and improving ease of doing business, while maintaining market integrity.
