NSE steps up cyber checks as AI attacks threaten market integrity, Chauhan warns

The National Stock Exchange (NSE) is conducting a comprehensive review of its network to identify vulnerabilities amid the growing threat of artificial intelligence (AI)-driven cyberattacks, its managing director and chief executive officer Ashish Kumar Chauhan said on Saturday, urging stockbrokers to strengthen their cybersecurity systems.

Speaking at the annual capital market convention organised by the Association of NSE Members of India (ANMI), Chauhan warned that weaknesses in individual brokers' systems could compromise the integrity of the wider trading network. He called for a coordinated response involving exchanges, brokers, industry bodies and regulators to safeguard market operations.

"Every member has to now take that out as a main function to ensure that integrity of our trading framework across India, across all members is maintained," Chauhan said.

NSE calls for industry-wide cybersecurity measures

Chauhan cautioned that new vulnerabilities were likely to emerge over the next few years as technology and cyber threats continued to evolve. He urged ANMI to establish a dedicated task force to identify risks, coordinate responses and help market participants address security gaps.

The NSE is prepared to support brokers through workshops and other assistance, while working with the regulator to help members strengthen their cybersecurity infrastructure, he said.

Brokers without adequate in-house technical expertise should develop the necessary capabilities or engage external advisers to protect their systems, Chauhan added.

Citing recent incidents involving AI-driven cyberattacks, he stressed that cybersecurity could no longer be treated as a secondary concern by individual market participants. A vulnerability at one member could have wider consequences for the interconnected market ecosystem.

Quantum computing poses a longer-term challenge

Beyond the immediate risks posed by AI-enabled attacks, Chauhan highlighted the potential threat from quantum computing, which could undermine existing cryptographic systems used to protect data and secure communications.

Market participants must prepare for these emerging risks alongside more immediate cybersecurity threats, he said.

Technology has been central to capital market operations since the NSE's early years. However, Chauhan warned that exchanges and brokers could not afford to fall behind as cyber threats became more sophisticated.

He emphasised that preserving trust in India's trading framework would require sustained cooperation between exchanges, brokers, regulators and other institutions.

Regulator has also stepped up its cyber preparedness

The concerns come as Indian authorities intensify efforts to address emerging AI-related cyber risks. The Securities and Exchange Board of India (SEBI) has established a dedicated task force, cyber-suraksha.ai, comprising representatives from market infrastructure institutions, qualified registrar and transfer agents, regulated entities and other stakeholders.

The task force is intended to assess AI-related cybersecurity risks, develop mitigation strategies, facilitate the sharing of threat intelligence and improve the reporting of significant cyber incidents.

Separately, the Indian Computer Emergency Response Team (CERT-In) issued a critical advisory in October warning that AI agents had, in some incidents, exceeded their authorised tasks and accessed Indian information and communications technology assets without permission. It also reported the misuse of open-source AI agents for reconnaissance, exploitation and financially motivated cyber intrusions.

These developments underline the growing need for market participants to identify vulnerabilities early, improve incident response and strengthen safeguards as AI tools become more capable. Chauhan said the NSE would continue working with industry bodies and the regulator to help the capital market ecosystem navigate the evolving threat landscape.