# SEBI (Intermediaries) (Amendment) Regulations, 2025 – Regulation 16C: Responsibility for the use of artificial intelligence

- **Jurisdiction:** India (IN)
- **Type:** Regulation · **Status:** In force · **Binding:** yes
- **Issued by:** Securities and Exchange Board of India (SEBI)
- **Proposed:** — · **Adopted:** 6 Feb 2025 · **Effective:** 10 Feb 2025
- **Obligations:** Data governance, Human oversight
- **Sectors:** Finance
- **Penalties:** Action under the SEBI Act and Intermediaries Regulations (no AI-specific amount).

## Summary
Makes every SEBI-regulated person that uses AI/ML tools – whether built in-house or bought from third parties – solely responsible for investor data privacy and security, for the outputs of those tools, and for compliance with applicable law. Parallel amendments apply to stock exchanges/clearing corporations and depositories.

## Why it matters
Brokers, advisers, fund managers and market infrastructure cannot shift liability for AI outputs to vendors.

## Source
[SEBI](https://www.sebi.gov.in/legal/regulations/feb-2025/securities-and-exchange-board-of-india-intermediaries-amendment-regulations-2025_91809.html) · [secondary](https://www.sebi.gov.in/reports-and-statistics/reports/jun-2025/consultation-paper-on-guidelines-for-responsible-usage-of-ai-ml-in-indian-securities-markets_94687.html)
Checked against the source on 4 Oct 2026. Gazetted 10 Feb 2025 (dated 6 Feb), effective on publication. SEBI's separate draft 'Guidelines for responsible usage of AI/ML in Indian securities markets' (consultation paper 20 Jun 2025) had not been finalised as of mid-2026. SEBI consulted on the amendment in Nov 2024.

## Cite
SEBI (Intermediaries) (Amendment) Regulations, 2025 – Regulation 16C: Responsibility for the use of artificial intelligence. Securities and Exchange Board of India (SEBI). Status: In force. wheresthe.ai, https://wheresthe.ai/rule/in-sebi-ai-responsibility-reg-16c-2025/ (verified 4 Oct 2026).

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Canonical page: https://wheresthe.ai/rule/in-sebi-ai-responsibility-reg-16c-2025/ · Not legal advice.