SEBI Markets Brief: AI-Driven Oversight and Growth The Securities and Exchange Board of India (SEBI) is accelerating the deployment of **Artificial Intelligence** and **Machine Learning** to safeguard market integrity. SEBI Chairman Tuhin Kanta Pandey recently confirmed that the regulator is now using AI tools for real-time monitoring of misconduct, specifically targeting insider trading and the rise of unregistered investment advice. Market surveillance has moved into a proactive phase. The regulator is actively scanning social media and digital platforms to identify "finfluencers" and advisors who cross the line into illegal investment tips. New rules effective this month require social media platforms to label all **AI-generated content** with permanent metadata to prevent the spread of synthetic misinformation. Sector Performance and Growth The scale of India’s capital markets continues to expand, necessitating this technological shift. The Portfolio Management Services (PMS) industry has seen assets under management surge to **₹10.5 lakh crore** as of January 2026, a significant leap from **₹5 lakh crore** in 2021. The number of PMS clients has grown by nearly **50%** since 2022, reaching approximately **2.15 lakh** investors. This rapid expansion in high-stakes portfolio management has prompted SEBI to mandate stricter internal controls and digital-first transparency norms for firms managing concentrated wealth. Daily Market Snapshot: February 23, 2026 Domestic indices showed resilience during Monday’s session despite global volatility. The **Nifty 50** closed at **25,647.90**, marking a gain of **0.30%** or **76.65 points**. The index continues to reflect a strong long-term trajectory with a one-year return of **12.52%**. The **Nifty Financial Services** index outperformed the broader market, rising **0.91%** to reach **28,468.60**. Gains were led by major private lenders and insurance providers, with some stocks seeing price increases of over **2%**. Regulatory Enforcement and Compliance The regulator has tightened the noose on misleading financial promotions. Regulated entities, including brokers and mutual funds, are now strictly prohibited from associating with any unregistered financial influencers for marketing purposes. To further protect retail investors, SEBI has moved to ban the use of **live market data** for investor education. Educators are now permitted to use only historical data to ensure that "learning" sessions do not turn into real-time, unregulated trading signals. Current enforcement actions include high-value recovery proceedings and the attachment of bank accounts in suspected insider trading cases, signaling a zero-tolerance approach to market manipulation as India's market capitalization exceeds **₹470 trillion**.