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<h1>SEBI Amends Regulations: Stock Exchanges Must Ensure Data Privacy and Security When Using AI Tools Under Regulation 39B.</h1> The Securities and Exchange Board of India (SEBI) has amended the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, effective upon publication in the Official Gazette. The amendment introduces Regulation 39B, which mandates that recognized stock exchanges and clearing corporations using artificial intelligence (AI) and machine learning tools are solely responsible for ensuring data privacy, security, and integrity. They must also ensure compliance with applicable laws and are accountable for outcomes from these technologies. This regulation applies regardless of whether the AI tools are developed internally or sourced from third parties.