Rules / SEBI Reg 16C (AI responsibility) / Regulation 16C(1)(a)

Regulation 16C(1)(a), SEBI Reg 16C (AI responsibility) (India)

Take sole responsibility for the privacy, security and integrity of investor and stakeholder data, including data held in a fiduciary capacity, throughout any processes using AI or machine learning tools.

WTA-R-IN-0003-001 Permanent ID

Scope

Applies to every 'person regulated by the Board' (Explanation 1 to Regulation 16A) using AI/ML tools, built in-house or procured from third parties, irrespective of scale. AI/ML tools include applications offered to investors or used internally, including for compliance.

Dates. Notification dated 6 Feb 2025; in force on publication in the Gazette on 10 Feb 2025 (Regulation 2).

Penalty. Action as SEBI deems fit, including action under Chapter V of the Intermediaries Regulations, 2008 (Reg. 16C(2)).

History

No changes to this obligation since we started recording on 8 Oct 2026. All changes

Cite this obligation

WTA-R-IN-0003-001: Regulation 16C(1)(a), SEBI (Intermediaries) (Amendment) Regulations, 2025 – Regulation 16C: Responsibility for the use of artificial intelligence. wheresthe.ai, https://wheresthe.ai/id/WTA-R-IN-0003-001/ (checked 8 Oct 2026).

Other obligations under SEBI Reg 16C (AI responsibility)

  1. WTA-R-IN-0003-002Regulation 16C(1)(b)DeployersSince 10 Feb 2025

    Take sole responsibility for the output of AI or machine learning tools that you rely on or deal with, whether designed in-house or procured from third-party technology providers.

  2. WTA-R-IN-0003-003Regulation 16C(1)(c)DeployersSince 10 Feb 2025

    Take sole responsibility for complying with all applicable laws in force when using AI or machine learning tools in your business or investor services.