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PolicyFinanceIndiaReported

SEBI consults on rules for AI and machine learning in securities markets

See how this story connects

Source: Securities and Exchange Board of IndiaAlso reported by Lakshmikumaran & Sridharan, Taxmann

The Securities and Exchange Board of India issued a consultation paper on 20 June 2025 proposing guidelines for responsible use of AI and machine learning by exchanges, brokers, mutual funds and other market participants. Proposals cover model governance and independent audits, testing and drift monitoring with human oversight, disclosure of AI use to investors, bias testing and data security, with full obligations for client-facing models and a lighter regime for internal back-office uses. SEBI had amended its regulations in February 2025 to make regulated entities responsible for the AI tools they use.

Why it matters

Brokers, fund houses and exchanges in India were told to expect audits, testing, records and investor disclosure for AI models used in trading, advice and operations.

When
20 Jun 2025
ID
WTA-N-2025-0070
Where
India
Who
SEBI
Rules involved

Summary by wheresthe.ai, from Securities and Exchange Board of India and the reporting credited above. We could not open the primary document, so it is marked Reported. Checked against the source on 9 Oct 2026.

Read the original at Securities and Exchange Board of India

Source copy: download the page as saved on 18 Oct 2026 (PDF). Also held by the Internet Archive.

Next stop on this Storyline: What happened nextSEBI chief says AI/ML rules will mandate kill switches and human oversight

Cite this story

WTA-N-2025-0070: “SEBI consults on rules for AI and machine learning in securities markets.” wheresthe.ai, 20 Jun 2025. https://wheresthe.ai/d/in-sebi-ai-ml-consultation-2025-06/ (source: Securities and Exchange Board of India).

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