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On May 5, 2026, the Securities and Exchange Board of India (SEBI) issued an advisory on emerging advanced artificial intelligence (AI) tools for vulnerability detection. The advisory, issued under Circular No. HO/13/19/12(1)2026-ITD-1_CIMGI/10873/2026, addresses the growing use of sophisticated AI technologies within India's securities market infrastructure. The advisory focuses on the deployment of advanced AI tools designed to identify and address vulnerabilities within market systems and operations. As AI applications become increasingly prevalent in securities markets, SEBI has recognised the need to provide guidance to market participants on the responsible and secure implementation of these emerging technologies. The advisory aims to ensure that market participants, including exchanges, clearing corporations, depositories, and other market infrastructure institutions, are equipped to effectively utilise AI-based vulnerability detection systems while maintaining robust cybersecurity and operational resilience standards. The advisory is applicable to all entities operating within India's securities market ecosystem that deploy or plan to deploy advanced AI tools for identifying system vulnerabilities, security gaps, and operational risks. This includes technology service providers supporting market infrastructure. Market participants should review the advisory and assess their current AI vulnerability detection capabilities against SEBI's guidance. Entities are expected to ensure compliance with the advisory's recommendations and implement appropriate governance frameworks for the oversight of AI-based vulnerability detection systems. Further updates or clarifications from SEBI should be monitored as the regulatory framework around AI in securities markets continues to evolve.