SEBI announced new regulations to govern AI-driven algorithmic trading, aiming to mitigate flash crash risks and enhance market integrity. Brokers will require pre-approval for AI models, implement real-time monitoring, and ensure transparency in model updates and data usage. Analysts noted that the measures, expected by early 2026, signal India’s proactive approach to balancing fintech innovation with financial stability as AI-based trading volumes rise across equities and derivatives markets.