Global Fintech Fest 2023: Madhabi Puri Buch advocates robust cybersecurity measures to safeguard broker stability

On artificial intelligence, she underscored its capacity to revolutionise regulatory approaches. Buch outlined the potential of AI in transitioning towards risk-based regulation, adapting rules to specific circumstances. Internally, SEBI has been considering whether existing disclosure requirements contribute to information overload, with AI poised to enable more precise and granular disclosures, enhancing transparency while reducing unnecessary complexity.

Buch's further observed a notable trend in the financial industry, where she said that incumbents are embracing fintech innovations. Leveraging their substantial resources in terms of cashflow and manpower, these incumbents are transforming into agile fintech entities, propelling the industry forward with modern technology.

One of Buch's most striking insights pertained to the continuity of financial markets. She noted that even in the unlikely event of a clearing corporation facing downtime, trading would persist seamlessly. This resilience is achieved by the physical replication of data from one exchange to another, ensuring the uninterrupted operation of financial markets.

Madhabi Buch's address at the Global Fintech Fest brought to the forefront a call for a segmented approach to regulation. For instance, in the case of Mutual Fund Lite, she advocated a reduction of the rule book governing mutual funds by up to 10 percent, particularly for passive funds. AI, she emphasised, would play a pivotal role in implementing these granular regulatory changes. Entities proficient in managing risks effectively would be rewarded with reduced regulatory burdens, fostering innovation and growth.