Global Fintech Fest: SEBI has ‘action plan’ prepared to ensure system safety in quantum computing era, says Pandey

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey addresses the gathering on the second day of the ‘Global Fintech Festival 2025’, in Mumbai
| Photo Credit:
PTI/SHASHANK PARADE

The emergence of quantum computing poses significant security challenges, prompting SEBI to prioritize safeguarding financial systems before its widespread adoption, Chairman Tuhin Kanta Pandey stated Wednesday.

Pandey highlighted that quantum-enabled technologies could potentially breach encryption methods previously deemed unbreakable. He emphasized the urgency for financial institutions to enhance their cybersecurity frameworks accordingly.

The market regulator has formulated a comprehensive strategy to ensure quantum preparedness across regulated entities, Pandey announced during his address at the GFF conference.

Quantum computing, which leverages quantum mechanical principles to solve complex problems beyond traditional computing capabilities, remains under active global research. Pandey noted the technology’s potential to disrupt conventional cryptographic security measures used for password protection.

“Our roadmap focuses on implementing quantum-resistant cryptographic solutions by 2028-2029 timeframe,” Pandey explained. “This phased approach involves identifying vulnerabilities, developing safeguards, and executing upgrades across the industry.”

Addressing technological neutrality in finance, Pandey expressed reservations about maintaining physical share certificates in an era dominated by dematerialized securities. “Absolute technological neutrality isn’t practical when legacy systems like paper-based holdings create inefficiencies,” he argued.

The Chairman stressed the importance of standardization in financial technologies, drawing parallels to internet protocols that enable universal connectivity. “Regulators must champion advanced yet standardized solutions that balance innovation with investor protection,” Pandey concluded, advocating for proactive technology adoption in capital markets.

Published on October 8, 2025