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🔎 Acts & Rules - Adv. Search ❯
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        SEBI

        Regulation 16C - Responsibility for the use of artificial intelligence

        Securities and Exchange Board of India (Intermediaries) Regulations, 2008
        Chapter IIIB
        USAGE OF ARTIFICIAL INTELLIGENCE

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        AI accountability: regulated entities must ensure data security, output reliability and legal compliance when using artificial intelligence. Regulated persons using artificial intelligence and machine learning tools, whether in house or third party, are solely responsible for (a) privacy, security and integrity of investors' and fiduciary data throughout processes; (b) outputs arising from such tools that they rely upon; and (c) compliance with applicable laws. The Board may take action, including under Chapter V, for violations. The regulation clarifies the scope of AI/ML tools and the meaning of person regulated by the Board.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                AI accountability: regulated entities must ensure data security, output reliability and legal compliance when using artificial intelligence.

                                Regulated persons using artificial intelligence and machine learning tools, whether in house or third party, are solely responsible for (a) privacy, security and integrity of investors' and fiduciary data throughout processes; (b) outputs arising from such tools that they rely upon; and (c) compliance with applicable laws. The Board may take action, including under Chapter V, for violations. The regulation clarifies the scope of AI/ML tools and the meaning of person regulated by the Board.


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