SEBI to release AI and ML guidelines for securities market
SEBI, India's stock market regulator, is about to roll out guidelines on how artificial intelligence (AI) and machine learning (ML) should be used responsibly in the securities market.
Announced by SEBI Chairman Tuhin Kanta Pandey at a major industry event, these rules are all about making sure AI boosts innovation while still protecting investors and balancing innovation with investor protection.
Guidelines mandate safeguards and entity responsibility
The new guidelines will require things like kill switches, human oversight, and data controls, basically safety checks so AI doesn't go rogue.
SEBI already uses AI tools for spotting fraud, but now every SEBI-regulated entity using AI or machine learning tools will have to take full responsibility for its systems, whether they build them or buy them.
The focus is on keeping markets trustworthy as tech gets smarter.