Mumbai, May 5 -- India's market regulator has warned that fast-evolving AI tools could amplify cyber vulnerabilities across the securities ecosystem.

In an advisory issued on Tuesday, the Securities and Exchange Board of India (Sebi) said it has constituted a task force named cyber-suraksha.ai, which includes market infrastructure institutions and other related stakeholders.

"Due to the interconnectedness and interdependency of market participants in the securities market ecosystem, a periodic coordinated approach for vulnerability management, information sharing and monitoring/assessment is required to prevent a cascading impact," said Sebi in a circular.

The regulator cautioned regulated entities about the rising risks from emerging ...