The National Stock Exchange of India (NSE) emphasized the untapped potential of artificial intelligence (AI) for live market surveillance during the Global Fintech Fest (GFF) 2026 on September 10. Sanjay Shorey, NSE's Executive Director, noted that while AI is already used in market investigations, no tools currently enable real-time surveillance to detect and cancel illegal trades before market close, according to medianama.com.
During a panel titled "AI in Capital Markets: From Trading to Market Surveillance," participants discussed how AI could shift surveillance from a post-trade activity to near real-time monitoring. Ishan Bansal, Co-founder and CFO of Groww, suggested reinforcement learning techniques could reduce repeated errors. Gopalan S. Raghavan, Executive Director at BSE, criticized current rule-based investigations for lacking a comprehensive market view and highlighted SEBI's role in overseeing the entire market to identify triggers for suspicious activity, medianama.com reported.
The discussion underscored the limitations of existing surveillance methods that focus on individual transactions after market closure. AI's ability to analyze market-wide data in real time could enhance detection of illegal trades and improve regulatory responses. This approach contrasts with current practices at exchanges like BSE, which rely on isolated transaction reviews. The integration of AI could represent a significant shift in regulatory oversight within India's capital markets, medianama.com detailed.
The panel at GFF 2026 concluded with the recognition that AI-driven live market surveillance remains an opportunity for development, with no current tools deployed in the market. The next steps involve exploring AI applications that can operate in near real-time to prevent illegal trades before market close, a capability that could reshape market regulation in India, according to medianama.com.