SEBI Chairman Announces Action Plan for Quantum Readiness in Regulated Ecosystem

The Securities and Exchange Board of India (SEBI), under the leadership of Chairman Tuhin Kanta Pandey, has taken a proactive step toward strengthening the resilience and security of India’s financial markets in the face of emerging technological challenges. On Tuesday, Pandey announced that SEBI has developed a comprehensive action plan on quantum readiness for its regulated ecosystem, aimed at preparing the capital market infrastructure to address the evolving risks posed by quantum computing. The announcement was made during his address at the Global Fintech Fest 2025, reflecting SEBI’s forward-looking approach in regulatory governance and financial market stability.

Quantum computing, with its immense computational power, poses both opportunities and challenges for modern financial systems. One of the primary concerns is its potential impact on cryptography. Traditional cryptographic systems that currently secure financial transactions, communications, and data could be rendered vulnerable by quantum algorithms capable of breaking existing encryption methods. Recognizing this threat, SEBI has formulated an action plan to proactively tackle post-quantum cryptographic issues, ensuring that the Indian financial markets remain robust and secure even as technology evolves.

Pandey emphasized that the action plan is not limited to technical preparedness alone but also includes capacity-building initiatives. These initiatives are aimed at enhancing the knowledge, skills, and awareness of market participants, intermediaries, and other stakeholders regarding quantum risks and mitigation strategies. By focusing on education and training, SEBI seeks to create a well-informed ecosystem that can adopt, implement, and comply with quantum-safe protocols as they become necessary. This dual focus on both infrastructure readiness and human capital development underscores SEBI’s holistic approach toward quantum preparedness.

The Chairman also noted that the financial market ecosystem is highly interconnected and dynamic, and any vulnerability in cryptographic systems can have cascading effects across multiple stakeholders. Therefore, SEBI’s initiative is timely and essential, as it not only addresses potential security threats but also aligns with global best practices in financial market regulation. By introducing these measures, SEBI aims to strengthen investor confidence, safeguard data integrity, and maintain the operational resilience of India’s capital markets in the face of disruptive technological advancements.

In addition, Pandey’s announcement at a prominent international platform like the Global Fintech Fest highlights India’s commitment to staying at the forefront of technological and regulatory developments. SEBI’s quantum readiness action plan also reflects a strategic vision where regulatory frameworks evolve alongside technology, ensuring that the financial markets remain safe, transparent, and efficient. By adopting a proactive rather than reactive approach, SEBI positions itself as a forward-thinking regulator, capable of anticipating challenges and implementing preventive measures before risks materialize.

In conclusion, SEBI’s development of an action plan on quantum readiness, combined with capacity-building programs, represents a critical step in preparing India’s financial ecosystem for the quantum era. It reinforces the regulator’s commitment to innovation, security, and resilience while fostering trust among investors and market participants. With quantum computing likely to redefine cybersecurity and encryption standards in the near future, SEBI’s initiatives serve as a model for other regulatory authorities worldwide, demonstrating the importance of proactive planning, stakeholder engagement, and strategic foresight in safeguarding financial markets.