The Securities and Exchange Board of India (Sebi) has raised alarms about the cyber risks associated with rapidly evolving artificial intelligence (AI) technologies in the securities market. In response, Sebi has launched a task force named cyber-suraksha.ai, which includes various market infrastructure institutions and stakeholders. The advisory stresses the importance of a coordinated approach to vulnerability management and information sharing, given the interconnected nature of market participants. Sebi cautioned that AI-driven tools, such as Claude Mythos, could identify vulnerabilities at an alarming pace, increasing the risk of exploitation and concerns over data confidentiality and application integrity. To mitigate these risks, Sebi has mandated that regulated entities update their operating systems and applications with the latest patches, conduct regular vulnerability assessments, and engage closely with third-party vendors for timely patch deployment. Furthermore, the regulator has tightened norms for system changes, requiring comprehensive documentation and impact analysis. Enhanced API security and strengthened security operation center (SOC) monitoring are also part of the new directives. Sebi encourages all regulated entities to develop a long-term strategy for integrating AI into their cybersecurity frameworks.