Mint Explainer: How AI is transforming investment banking

AI is revolutionizing investment banking by automating routine tasks, enhancing productivity, and potentially increasing revenue. While AI handles process-driven tasks, human expertise remains essential for strategic decisions. The industry faces challenges around advisory fees, data security, and regulatory compliance as AI adoption expands. Meanwhile, India’s markets regulator is well aware of the use of AI and has established frameworks to manage the resulting compliance risks. The Securities and Exchange Board of India (Sebi) introduced Regulation 16C in its intermediaries’ regulations in early 2025. Anant Mishra, a partner at law firm JSA, noted the rule dictates that intermediaries remain accountable for AI systems, whether developed internally or via third-party vendors. “Crucially, the provision eliminates any scope for deflecting liability onto technology providers or opaque algorithms,” he explained. “Irrespective of the technology used, the liability will squarely lie with the intermediary.” Read more