The Securities and Exchange Board of India announced that its PolicyTwin prototype won first place at the global Agentic Regulator Hackathon. The artificial intelligence tool creates a virtual securities market in which regulators can test draft policies and assess potential effects on trading, settlement, investor losses and market fairness before implementation. PolicyTwin simulates the behavior of retail investors, institutions, brokers, high speed traders and bad actors. It can identify warning signs such as market manipulation, margin shortages, retail investor losses and misuse of automated trading, then test safeguards including collateral freezes or slower order flows. Officials retain control over assumptions and decisions, while findings are presented as evidence rather than acted on automatically. The prototype was selected from 336 submissions involving 942 participants across more than 65 countries. The winning team received USD 35,000 and was invited to present the solution at a fintech event in Singapore in November 2026. SEBI plans to adopt PolicyTwin after further refinement and testing.

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