SEBI has formed a committee called ‘Committee on Financial and Regulatory Technologies (CFRT)’ to understand how digital technology and fintech would help the financial markets grow. In a circular, SEBI has said that it has set up a committee to reap the opportunities provided by fintech and deal with relevant risks and challenges in digital space.
T.V. Mohandas Pai, Chairman, Manipal Global Education will head this committee. The other members of the committee are experts from various areas such as digital payments, e-brokerage, financing, investment platform, product reengineering, data analytics and eCommerce.
The committee will recommend measures on how fintech such as robo-advisors can help grow the penetration of mutual funds in India and simplification of KYC.
Here are the areas that the committee will look into:
- Recent and medium term trends (within next 5 years) in fintech developments in securities market worldwide
- Opportunities and challenges from new fintech solutions and its impact on Indian securities market
- Fintech solutions for further widening and deepening of Indian securities market
- Approach and framework for regulatory sandbox in Indian market conditions to facilitate adoption of fintech and promote financial innovations
- Preparing Indian securities market and regulatory framework to adopt to new fintech solutions while promoting market integrity, market development, consumer protection and managing change, business models and market disruptions
- Assessing technological solutions for regulatory functions of SEBI viz. information management and data mining, risk management including cyber security, intermediary supervision and consumer protection through application of new technological solutions like application of distributed ledger technology, big data, data analytics, artificial intelligence and machine learning
