India’s Finance Minister Nirmala Sitharaman called on Saturday for all participants in the financial industry to maintain exceptional alertness regarding cybersecurity risks. Without directly referencing Mythos, the new AI platform from Anthropic, she highlighted how AI technologies are accelerating and adapting cyberattacks. These systems can identify vulnerabilities automatically and insert harmful code undetected, she explained. Speaking at the 28th anniversary celebration of the capital markets authority, Sitharaman emphasized that not only the Securities and Exchange Board of India (Sebi) but all supervised organizations must stay highly alert. She noted that attack methods are advancing rapidly, requiring defensive measures to progress even quicker. Her remarks follow growing worries about Mythos’s potential, prompting global regulators and officials to assess the platform and strengthen protections. On Thursday, the government convened a meeting in New Delhi with senior bankers and ministers, including Sitharaman and IT Minister Ashwini Vaishnaw, resulting in the creation of a special committee led by State Bank of India Chairman C S Setty. Sitharaman cautioned that a successful cyber breach at a key stock exchange, repository, or major brokerage could cause widespread market disruption, financial losses, and diminished public trust. She encouraged Sebi to address these emerging cybersecurity issues effectively. The minister recommended that Sebi establish regular discussions with international counterparts, stressing that India’s rules should not simply copy those of others. Amid concerns about overseas investments, she added that such interactions could boost assurance for international funds. Greater global understanding of Sebi’s approaches would enhance confidence in India’s markets and strengthen Sebi’s role in worldwide standards, she said. Sitharaman also advocated for advancing toward unified know-your-customer (KYC) procedures across the financial system. She stated that all involved parties share the duty to prevent individuals from undergoing repeated verifications for different services and platforms, and urged Sebi to lead in establishing standardized KYC guidelines. Regarding rulemaking, the minister supported a gentle, consultation-driven method focused on broad principles instead of exhaustive directives. Regulations should be forward-looking and refined rather than just responsive and limiting, she remarked. Sitharaman described Sebi’s recent measures against unauthorized financial influencers as evidence of its commitment to curbing unlicensed advice, and stressed the importance of expanding financial literacy initiatives. She declared that exploiting the trust of inexperienced retail investors for personal gain is unacceptable. With technological advancements, there has been a surge in deceptive investment videos and applications on social media, often employing deepfake AI to mimic prominent figures, she observed. The minister directed Sebi to allocate significant resources to public education efforts, including multilingual campaigns on major platforms and swift removal processes for fake content imitating officials. Investor safeguards should transition from purely protective to growth-oriented roles, she suggested. A strong effort is needed to enhance municipal bonds as a funding tool, as urban development cannot rely solely on government budgets, she added. For corporate bonds, she advocated improving credit support systems to broaden access beyond top-rated entities. Sitharaman concluded that the aim is for superior markets, not just larger ones, noting that expansion without honesty leads to weakness, high activity without safeguards amounts to abuse, and development without oversight is not viable.
