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

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

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

WTA-R-IN-0003-003 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. No schema type matches a general legal-compliance duty, so it is classed as data-governance.

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-0003-003: Regulation 16C(1)(c), SEBI (Intermediaries) (Amendment) Regulations, 2025 – Regulation 16C: Responsibility for the use of artificial intelligence. wheresthe.ai, https://wheresthe.ai/id/WTA-R-IN-0003-003/ (checked 8 Oct 2026).

Other obligations under SEBI Reg 16C (AI responsibility)

  1. WTA-R-IN-0003-001Regulation 16C(1)(a)DeployersSince 10 Feb 2025

    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.

  2. 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.