AI Agents for SEBI & RBI – Transforming Compliance, Risk, and Audit

In the era of dynamic regulations and heightened oversight, compliance officers and tech leaders face mounting pressure to do more with less. OnFinance AI’s suite of intelligent agents is designed to lighten the load – automating tedious tasks, detecting risks in real-time, and ensuring every requirement of SEBI and RBI is met with precision. The result? Reduced manual effort, greater accuracy, unwavering regulatory alignment, and a stronger ROI on your compliance initiatives. Below, we highlight our key AI agent offerings, neatly organized by regulator and function, to show how they can empower your compliance, risk, and audit teams.

SEBI-Focused AI Solutions

Compliance & Governance Agents (SEBI)

• Investment Adviser Compliance AI – Monitors the activities of SEBI-registered Investment Advisers to ensure strict adherence to client risk profiling norms, fee caps, and conflict-of-interest disclosures. By automating these checks, it protects investors and prevents advisers from ever straying out of bounds of SEBI’s regulations.

• Research Analyst Compliance AI – Keeps a watch on equity research processes to confirm analysts follow SEBI’s code of conduct (no trading ahead of reports, proper disclosures in research reports, etc.). This guarantees that your research reports are clean, compliant, and trustworthy, upholding market integrity.

• LODR Compliance AI – Tracks all required filings and disclosures under SEBI’s Listing Obligations and Disclosure Requirements. It automatically alerts you to any upcoming or missed deadlines, eliminating manual tracking and ensuring your listed company stays fully compliant at all times.

• Broker Compliance AI – Automatically audits stock brokers’ compliance with key rules: client fund segregation, margin requirements, exchange reporting, and more. It flags any deviations in real time, preventing potential violations and reinforcing client trust by ensuring brokers operate by the book.

• Marketing Communication AI – Scans marketing materials, product brochures, and investment ads to ensure they are fair, clear, and not misleading per SEBI’s advertising codes. This agent protects your firm’s reputation by catching non-compliant claims or omissions, so all client communications meet the highest standards of transparency.

• Related-Party Transactions AI – Aggregates all related-party deals and checks that proper approvals (audit committee, shareholder) are obtained and disclosures made under SEBI’s tightened 2022 RPT norms. It shines a light on any undisclosed insider dealings, strengthening corporate governance and transparency.

Risk & Surveillance Agents (SEBI)

• Market Abuse Surveillance AI – Monitors trading activity across markets to flag suspicious patterns indicative of market manipulation – whether it’s a pump-and-dump scheme, spoofing orders, or front-running by insiders. Compliance teams get instant alerts on unusual trades, enabling proactive intervention before investors are harmed.

• Insider Trading Surveillance AI – Keeps a close eye on trades by insiders and connected persons, and even monitors their communications for leaks. By correlating market data with email/chat patterns, this agent can detect insider trading attempts early, helping you stop illicit activity and enforce fair market practices.

• Communication Monitoring AI – Listens to and scans internal communications (emails, chats, recorded calls) for any signs of regulatory trouble – from unauthorized tips and rumor-sharing to compliance policy violations. It serves as a 24x7 watchdog, preventing information leakage and misconduct by alerting you to risky communications in real time.

• Social Media Monitoring AI – Tracks public forums, blogs, and social media for emerging market rumors, “finfluencer” stock tips, or unauthorized investment advice that could impact your securities. Early warnings from this agent help your team stay ahead of market-moving chatter, allowing timely action to correct misinformation or report illicit advice being given to the public.

• Employee Trading Compliance AI – Monitors employees’ personal trading accounts (at brokers, asset managers, etc.) to ensure no one is trading on non-public information or breaching internal trading policies. It enforces your internal code of conduct and prevents conflicts of interest, keeping both your organization and regulators confident that staff aren’t profiting from inside information.

Audit & Oversight Agents (SEBI)

• Audit Trail Compliance AI – Ensures all critical transactions and system changes in your trading systems are recorded with a tamper-proof, time-stamped audit trail. This not only meets SEBI’s latest cyber-resilience and audit trail mandates for brokers/exchanges, but also simplifies audits by making sure every action is logged and readily verifiable.

• Asset Reconciliation AI – Automatically reconciles client assets and collateral records (particularly for custodians and debenture trustees) to verify that every security or fund is accounted for. Any discrepancy in client asset segregation or shortfall in debenture cover is immediately flagged, helping you meet SEBI’s strict trustee/custodian obligations and protect investor assets.

RBI-Focused AI Solutions

Compliance & Regulatory Reporting Agents (RBI)

• Regulatory Reporting Automation AI – Prepares and validates all your periodic returns and filings to RBI (and other regulators) with minimal human input. Whether it’s a complex prudential report or a simple compliance certificate, this agent pulls data from your systems, checks it for accuracy, and formats it to regulators’ specifications. The result is error-free reports on time, every time, without the usual last-minute scrambles.

• Regulatory Change Monitoring AI – Scans every new RBI circular, notification, or guideline (as well as relevant SEBI updates) and automatically maps these changes to your internal policies and checklists. You’ll never be caught off-guard by a regulatory update – this agent provides timely alerts and actionable checklists so your compliance framework is always up-to-date with the latest rules.

• Digital Lending Compliance AI – Continuously audits your digital lending platform or partnerships to ensure full compliance with RBI’s digital lending guidelines. For example, it ensures all loan disbursals flow directly from lenders to borrowers (no third-party pools) and that each borrower receives the standardized Key Fact Statement with the true APR. By enforcing these rules in real time, it protects customers and keeps your lending process completely aligned with RBI’s consumer protection norms.

• Customer Grievance Compliance AI – Tracks all customer complaints across emails, calls, and grievance portals, making sure each is resolved within the stipulated timeframe. It auto-escalates any unresolved issues and compiles required reports for RBI’s CMS and SEBI’s SCORES systems. With this agent, you demonstrate exemplary customer protection, never missing a regulator’s deadline for complaint resolution or reporting.

• IT Outsourcing Compliance AI – Monitors your IT vendors and outsourcing arrangements (including cloud services) to ensure they meet RBI’s Master Direction on Outsourcing of IT Services and SEBI’s outsourcing guidelines. From checking that data is encrypted and kept confidential, to verifying you have recovery plans from each vendor, this agent mitigates third-party risks. It flags any gaps against regulatory norms, so you can fix issues before they become compliance incidents.

• Data Localization AI – Keeps watch over where your sensitive data resides. If payments or personal data is supposed to stay on Indian servers per RBI’s data localization mandate, this agent ensures it does – and immediately alerts you if any backup or flow of data strays to an overseas cloud. You can rest easy knowing your data storage practices will stand up to regulatory scrutiny.

• Record Retention AI – Automates your record-keeping compliance. It tracks how long you’ve kept various records (transactions, KYC documents, call logs, emails, etc.) and prompts secure disposal once the mandated retention period ends. This ensures you comply with all record retention laws (for instance, PMLA’s 5-year rule or SEBI’s 8-year record rule) without holding data longer than necessary – reducing both regulatory risk and storage costs.

Risk Management & Prudential Agents (RBI)

• Capital & Liquidity Compliance AI – Monitors your capital adequacy ratios and liquidity metrics in real time. It watches indicators like CRAR, leverage ratio, CRR/SLR, and liquidity coverage (LCR/NSFR), warning you early if you’re approaching regulatory minimums. This proactive oversight prevents compliance breaches – you’ll have ample time to raise capital or adjust asset-liability mixes before falling below RBI’s thresholds.

• Credit Risk Model Validation AI – Automatically validates and back-tests your internal credit risk models (PD, LGD, ECL calculations, etc.) against both historical data and stress scenarios. It ensures your models meet RBI’s governance standards and perform within acceptable ranges. By catching model errors or bias, this agent bolsters the accuracy of your risk forecasts and keeps your model risk governance strong.

• NPA & Stress Resolution AI – Keeps a continuous watch on your loan portfolios to flag early warning signs of stress. If an account shows signs of incipient default, the agent alerts you to classify it as SMA/NPA per RBI norms and even tracks that resolution plans are formulated within the 30/180-day windows of RBI’s framework. This means you’ll never miss a beat on NPA recognition or resolution, avoiding regulatory penalties and ensuring prompt action on bad loans.

• Stress Testing & ICAAP AI – Runs automated stress tests on your portfolios (credit, market, liquidity risks) and compiles the results for your Internal Capital Adequacy Assessment Process report. It makes sure all stress scenarios and material risks are accounted for as per RBI guidelines. Management gets a clear view of how the bank holds up under extreme conditions, and regulators get confidence that your capital planning is rigorous and forward-looking.

• Large Exposure Monitoring AI – Tracks your exposures to single borrowers and business groups, constantly checking them against RBI’s Large Exposure Framework limits. If a new loan or investment might cause an exposure to exceed, say, 25% of Tier-1 capital to one conglomerate, the system flags it instantly. The benefit: you stay well within concentration risk limits, shielding your institution from regulatory breaches and over-concentration risks.

• Climate Risk Compliance AI – Evaluates your bank’s climate risk profile and ensures you’re ready for emerging climate risk regulations. It can monitor your carbon asset exposures, run climate stress scenarios, and check that climate-related financial disclosures align with SEBI’s ESG mandates. This forward-looking agent future-proofs your risk management, preparing you for upcoming RBI climate risk guidelines and global sustainability standards alike.

• AML Transaction Monitoring AI – Scours all transactions and account activities for patterns of money laundering and terrorist financing. Using advanced pattern recognition, it flags unusual behaviors (like rapid movements of funds through multiple accounts, structuring of deposits, etc.) and raises real-time alerts for review. By automating AML surveillance across both banking and securities transactions, this agent ensures suspicious activities never go unnoticed, and that you can file required STRs well within deadlines.

• Sanctions & PEP Screening AI – Continuously screens your customer database and incoming/outgoing transactions against international sanctions lists and politically exposed persons (PEP) lists. The moment a blacklisted entity or high-risk individual is detected, it alerts compliance and can even block the transaction. This tool protects your institution from facilitating prohibited transactions, keeping you in strict alignment with global sanctions regimes and RBI/SEBI AML rules.

• Fraud Detection AI – Monitors accounts, payments, and logs for any anomaly that could indicate fraud – from account takeovers and phishing attacks to internal fraud or fake documentation. It uses machine learning to differentiate legitimate behavior from suspicious, catching fraud attempts as they happen. The immediate alerts and insights help you prevent financial losses and reputational damage, while also meeting the RBI’s expectations for proactive fraud risk management. (Bonus: it also scans loan accounts for early warning signals of fraud or diversion, so you can intervene before a bad loan turns into a fraud case.)

Audit & Oversight Agents (RBI)

• Internal Audit AI – Leverages AI to automate your internal audit processes, especially the Risk-Based Internal Audit (RBIA) now required in banks and large NBFCs. This agent dynamically identifies high-risk areas, conducts continuous control testing, and even populates audit workpapers. By augmenting your audit team, it expands coverage without expanding headcount – ensuring you meet RBI’s audit standards and catch control lapses before regulators do.

• Third-Party Risk (Vendor Compliance) AI – Keeps an automated watch on all third-party vendors, fintech partners, and outsourcing arrangements. It tracks contractual commitments, audit reports, security postures, and compliance obligations for each partner. If a vendor falls out of line with RBI/SEBI outsourcing guidelines or your internal policies, you get an immediate alert. This way, you manage outsourcing risks proactively and can reassure regulators that no third-party is a weak link in your compliance chain.

• Training & Certification Compliance AI – Ensures your people remain a strong first line of defense. This agent tracks every employee’s mandatory trainings and certifications – from annual KYC/AML refreshers to NISM certifications for market-facing staff. It sends reminders, schedules re-tests, and reports completion status. The outcome is a fully trained workforce that meets all regulatory competency requirements, with zero manual tracking by HR or compliance teams.

• Regulatory Audit Prep AI – Think of this as your personal compliance auditor on-call. It maintains an up-to-date repository of all compliance evidence – policies, approvals, past filings, audit findings – and continuously checks your preparedness against RBI and SEBI inspection checklists. Before any official audit or inspection, it runs a self-assessment and flags gaps. You’ll enter every regulatory exam fully prepared and organized, drastically cutting the time and stress of regulatory audits.

• Unified Compliance Dashboard AI – Brings everything together in one pane of glass. This agent provides a real-time dashboard of all compliance, risk, and audit metrics across your organization, integrating the status from every other AI agent. At a glance, you and your board can see where you stand on all SEBI and RBI obligations. Such unified oversight empowers leadership with data-driven confidence – demonstrating a strong compliance culture to regulators and ensuring nothing falls through the cracks.

Conclusion & Call to Action: Each of the AI agents above is built to deliver immediate, tangible benefits – be it a 70% reduction in manual compliance hours, near-zero filing errors, or the early detection of a market abuse scenario that could save your firm millions in fines. In an environment where regulatory expectations are sky-high, these AI solutions act as force-multipliers for your compliance, risk, and audit teams, ensuring no obligation is overlooked and no threat goes undetected.

Ready to transform your compliance operations and boost your ROI? Get in touch with us at OnFinance AI to learn more about how our agents can be tailored to your organization’s needs. Let us help you build a compliance framework that’s not just reactive, but truly proactive – so you can stay ahead of regulations and focus on driving your business forward with confidence.

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