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Informist, Wednesday, Dec. 18, 2024

MUMBAI – The Securities and Exchange Board of India Wednesday approved the proposal to amend provisions related to regulated individuals or entities using artificial intelligence tools from third-party service providers. The regulator said such participants should take full responsibility for the use of such tools and that they will be solely responsible for investors' privacy and security of data. They would also be responsible for the output arising from the usage of such tools and techniques it relies upon or deals with, it said in a press release.

In November, the market regulator had raised concerns about the increasing use of AI in financial markets. "While recognising the need for intermediaries to embrace such latest techniques and AI tools, it is equally important to ensure the protection of investors with the usage of such tools," SEBI had said in a consultation paper last month. There is a pressing need to assign responsibility on the market infrastructure institutions, intermediaries and persons regulated by SEBI that use such tools to bring more seriousness, it said. 

Such AI tools include any application or software programme, or executable system, or a combination of these offered by a regulated individual or entity to investors.  End

Reported by Anjana Therese Antony

Edited by Deepshikha Bhardwaj

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