CDSL issued a notification regarding the reporting of Artificial Intelligence (AI) and Machine Learning (ML) applications and Systems Offered and used by Market Intermediaries

The Central Depository Services (India) Limited (CDSL) on May 06, 2025, issued a notification regarding the reporting of Artificial Intelligence (AI) and Machine Learning (ML) applications and Systems Offered and used by Market Intermediaries.

The following has been stated: - 

•CDSL has revised the reporting frequency for AI and ML systems by Depository Participants (DPs) from quarterly to annually, per SEBI's directive. 

•All DPs must submit the prescribed report (Annexure A) within three months of the financial year-end, starting FY 2024–25. 

•Submission is mandatory for all DPs, even if they are not using AI/ML systems (NIL submission required). Reports must be uploaded on the CDSL Auditweb portal.

The detailed notification is given in the document below.

[Notification No. CDSL/RISK/DP/POLCY/2025/298]