SEBI issued a circular regarding Advisory on Emerging Advanced Artificial Intelligence (AI) Tools for Vulnerability Detection

May 06, 2026 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Securities and Exchange Board of India (SEBI) on May 05, 2026, issued a circular regarding Advisory on Emerging Advanced Artificial Intelligence (AI) Tools for Vulnerability Detection.

The following has been stated:-

•The advisory highlights that advanced AI tools for vulnerability detection (like Mythos) are creating new cybersecurity risks for regulated entities, including threats to data confidentiality, system integrity, and reliability. 

•Due to the interconnected nature of the securities market, a coordinated approach for vulnerability management, monitoring, and information sharing is essential to avoid cascading risks.

•A task force named cyber-suraksha.ai has been formed to assess AI-related cybersecurity risks, share threat intelligence, and strengthen overall cyber resilience, including reviewing third-party vendors. 

•The advisory recommends regular system updates, vulnerability assessments, vendor coordination, secure API practices, and continuous monitoring through SOC and AI-driven tools.

•It also emphasizes risk assessment, system hardening, proper change management, and maintaining asset inventories, along with adopting long-term AI strategies for threat detection and mitigation. 

•The circular is issued under the Securities and Exchange Board of India Act, 1992 to protect investors and ensure a secure securities market.

[Circular No.: HO/13/19/12(1)2026-ITD-1_CIMGI/10873/2026]


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