SEBI Developing Action Plan for Quantum-Safe Computing for Market Ecosystem

SEBI Chairman Tuhin Kanta Pandey said the regulator is working on an action plan to prepare India’s market ecosystem for the risks of quantum computing. He was speaking at the Global Fintech Fest in Mumbai on October 8, 2025.

Cryptography at Risk

Pandey explained that quantum computers could break the current encryption standards, including 128-bit systems, which are widely used for securing passwords. He said the regulator is looking to introduce post-quantum cryptography and quantum key distribution to replace existing methods.

SEBI has set 2028-29 as the period when quantum-safe systems should be ready across its regulated entities. Pandey compared the preparedness needed for this transition to the scale of work done during the Y2K shift.

Testing New Technologies

Through its Innovation Sandbox, SEBI is allowing fintech firms to test blockchain and distributed ledger technology. These trials are focused on improving transparency in securities markets. Demonstrations of these applications are being carried out under regulatory supervision.

In August 2024, SEBI issued a Cybersecurity and Cyber Resilience Framework for all regulated entities. The framework lists steps to help firms prevent, respond to, and recover from cyber incidents. Pandey said cyber threats could lead to wider disruptions across connected systems.

Other Technology Initiatives

Recent steps taken by SEBI include Validate UPI Handles and SEBI Check, which focus on investor protection and fraud detection. The regulator is also using artificial intelligence and machine learning tools to track market manipulation and monitor intermediaries in real time.

Pandey said complete technology neutrality is not possible. He added that paper-based shareholding has little relevance in today’s dematerialised system and emphasised the need for standardisation across technologies.

Read More: SEBI Tightens Block Deal Rules; Raises Minimum Trade Size to ₹25 Crore!

Conclusion

SEBI’s preparations cover quantum readiness, blockchain testing, cybersecurity rules, and AI-based monitoring, aimed at keeping the securities market secure and efficient.

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