India’s market regulator has raised concerns over the growing misuse of artificial intelligence in financial markets, warning that AI-driven misinformation and exaggerated technology claims could undermine investor trust. The Securities and Exchange Board of India (Sebi) has cautioned intermediaries and listed companies against “AI washing,” where artificial intelligence is overstated or misleadingly marketed to attract investors. As AI adoption accelerates across trading, advisory, and compliance functions, regulators are emphasizing transparency, accountability, and robust governance.