The Chairman of the Security and Exchange Board of India(SEBI), Ajay Tyagi, makes a bet on blockchain technology and promotes research of the best possible way of blockchain in securities markets.

SEBI regulates the Indian securities market. On Jan 23, chatting at a research conference on ‘Changing Landscape of Securities Market’ conducted by the National Institute of Securities Markets, Patalganj, Tyagi stated that utilization of blockchain, artificial intelligence, and machine learning have the potential to cause a standard shift in the securities markets landscape.

“Blockchain could be used in the clearing, settlement, and recordkeeping given its benefits in maintaining records in distributed ledgers, while still being a single source of truth.”

He uses an instance of some international blockchain projects and requests for research in these areas. 

“Some foreign exchanges are developing Blockchain-based solutions for settlement and by domestic exchanges for KYC recordkeeping purposes. There is a need for active research into these technologies to explore their best possible usage in securities markets.”

Added power to the latest technologies

Tyagi also highlighted the use of the latest technologies, including machine learning, artificial intelligence, and blockchain, to streamline the securities market. Technology has played a vital role in reconstructing the capital markets. He stated:

“Catching malpractices in the market using the standard tools is increasingly getting difficult. SEBI has already planned the Data Lake project to augment analytical capability with advance analytical tools viz., AI/ML, deep learning, big data analytics, and natural language processing, etc.”

Though the Indian government is optimistic about the use of blockchain in various cases, it is not particularly positive on cryptocurrency. As reported, the Supreme Court of India is hearing an appeal filed against the prohibition on the banking channel imposed by RBI (Reserve Bank of India). The next hearing on this lawsuit is scheduled for Jan 28.