The Securities and Exchange Board of India (SEBI) has established an advisory committee that will research the blockchain technology. The committee will be chaired by Mr. T.V. Mohandas Pai, a former board member of Infosys.
SEBI said in its release:
“[The committee will study] technological solutions for regulatory functions of SEBI viz. information management and data mining, risk management including cyber security, intermediary supervision, consumer protection, etc. through application of new technological solutions like application of distributed ledger technology, big data, data analytics, artificial intelligence, machine Learning etc.”
The application of Blockchain technology is still not clear and SEBI is currently trying to understand the impact of the technology on financial markets and probable usage to ensure better security and faster transactions. The development may also be considered related to other developments on the legal status of Digital Assets in India. Reports suggest that the opinion on legalizing Cryptocurrencies is divided within the group however, the report of the committee set up by the Finance Ministry in March has not yet been made public. It has also been discussed that a taxation framework may be developed to ensure that these transactions do not escape the tax net.