FM Flags Cybersecurity, Deepfake Threats; Launches ‘Mission Jagrook’ at SEBI’s 38th Foundation Day

Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, today issued a strong warning on emerging cyber threats to India’s financial markets while calling for accelerated investor awareness and regulatory agility, during her keynote address at the 38th Foundation Day of the Securities and Exchange Board of India (SEBI).

On the occasion, the Finance Minister also digitally launched SEBI’s nationwide investor awareness campaign, ‘Mission Jagrook’, aimed at empowering investors with knowledge and tools to identify fraud and make informed financial decisions.

Cybersecurity: The Most Pressing Risk to Financial Stability

Highlighting the increasing digitisation of financial markets, Smt. Sitharaman cautioned that cybersecurity threats now represent one of the most significant risks to market stability. She warned that a single successful cyberattack on a major financial institution—such as an exchange, depository, clearing corporation, or brokerage—could have cascading national consequences, including wealth erosion and long-term loss of investor confidence.

She noted that artificial intelligence is rapidly transforming the nature of cyber threats, enabling attacks that are faster, adaptive, and capable of evolving in real time. These include automated vulnerability detection, supply chain attacks, malicious code interference, and coordinated intrusions that evade traditional defence systems.

“The tools of attack are evolving at high speed, and the tools of defence must evolve even faster,” she emphasised, urging not just SEBI but all regulated entities to remain constantly vigilant.

Deepfake Investment Frauds and Digital Misinformation

The Finance Minister also drew attention to the surge in fraudulent investment schemes circulating on social media platforms, many leveraging deepfake AI technologies to impersonate public figures and mislead investors.

She stressed the need for robust public awareness campaigns across digital platforms and regional languages, alongside rapid-response mechanisms to identify and take down fraudulent content.

Strengthening Regulatory Frameworks and Technology Adoption

Commending SEBI’s Cybersecurity and Cyber Resilience Framework implemented in April 2025, Smt. Sitharaman described it as a strong foundation for safeguarding India’s financial ecosystem.

She highlighted the role of SEBI’s Data Analytics and Digital Forensics Laboratory, which uses advanced analytics and AI/ML models to detect complex fraud patterns and market manipulation. She also praised initiatives like “SEBI Check”, a tool that allows investors to verify payment details of registered intermediaries before transferring funds, calling for its wider expansion and visibility.

Push for Investor Protection and Awareness

Reinforcing the importance of investor trust, the Finance Minister emphasised that grievance redressal systems must remain accessible, credible, and timely. She appreciated SEBI’s crackdown on unregistered “fin-fluencers,” noting that monetising uninformed investor trust must not be tolerated.

She also lauded joint initiatives such as ‘Niveshak Shivir’ programmes conducted with IEPFA and other institutions to reduce unclaimed financial assets and raise awareness.

Regulatory Reforms and Ease of Doing Business

Advocating a balanced regulatory approach, Smt. Sitharaman called for “soft-touch” and principles-based regulation supported by public consultation, rather than overly complex rulebooks. She reiterated that such an approach enhances economic efficiency and compliance, aligning with the Union Budget 2023 vision of participatory regulation.

She further urged SEBI to lead efforts in standardising and simplifying Know Your Customer (KYC) norms across the securities market through digitalisation, improving ease of access for investors.

India’s Expanding Capital Markets: Data Highlights Growth Story

SEBI Chairman Shri Tuhin Kanta Pandey, speaking at the event, highlighted the regulator’s transformative reforms over the years—from screen-based trading and dematerialisation to rolling settlements and strengthened corporate governance.

He shared that India now has over 5,900 listed companies and more than 140 million unique investors. Over the past decade, market capitalisation has grown at an average annual rate of around 15%, while mutual fund assets have expanded at over 20% annually. The primary market continues to facilitate capital formation of nearly ₹10 trillion each year, reflecting the increasing depth and maturity of India’s financial ecosystem.

Global Integration and Future Outlook

The Finance Minister underscored that India’s financial markets are increasingly integrated with global capital flows, making it essential for regulatory frameworks to remain aligned with international developments.

“Our investors are global, and regulatory developments in one jurisdiction influence markets across borders,” she noted, calling for greater international engagement and coordination.

A Roadmap for Resilient and Inclusive Markets

As India’s capital markets continue to expand rapidly, the Finance Minister’s address outlined a clear roadmap—strengthening cybersecurity, enhancing investor awareness, leveraging technology, and maintaining responsive regulation.

With initiatives like Mission Jagrook and ongoing reforms, SEBI is positioned to play a central role in ensuring that India’s financial markets remain secure, transparent, and inclusive in an increasingly digital and interconnected world.