On 6-2-2025, the Securities and Exchange Board of India notified the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2025 to amend the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. The provisions came into force on 10-2-2025. The Regulations introduces a new chapter relating to Usage of Artificial Intelligence.
1. If any person uses AI/ machine learning tools and techniques, then that person will be solely responsible for:
- The privacy/ security and integrity of investors’ and stakeholders’ data including data maintained by it in a fiduciary capacity throughout the processes involved;
- output arising from the usage of such tools/ techniques it relies upon or deals with;
- compliance with applicable laws in force.
2. The usage of AI by any person who is regulated by SEBI and such AI is designed by SEBI or procured from third-party technology service providers will be responsible for the above mentioned points.
3. The expression “AI and machine learning tools and techniques” will include “any application or software program or executable system or a combination thereof, offered by the person regulated by the Board to investors/stakeholders or used internally by it to facilitate investing and trading or to disseminate investment strategies and advice or to carry out its activities including compliance requirements and the same are portrayed as part of the products offered to the public or under usage for compliance or management or other business purposes.”.
