The Securities and Exchange Board of India on February 10, 2025, issued the Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2025, to further amend the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.
The following has been stated namely: -
• After Chapter IIIA and before Chapter IV, a new Chapter shall be inserted, namely:- “Chapter IIIB - Usage of Artificial Intelligence”
• Under chapter IIIB, regulation 16C outlines the responsibility for the use of artificial intelligence, it states that any person regulated by the Board using AI/ML tools, whether self-designed or third-party, is solely responsible for data privacy, security, integrity, output reliability, and legal compliance, with the Board empowered to take action for violations under Chapter V.
[Notification no. F. No. SEBI/LAD-NRO/GN/2025/226]
