Sebi Proposes Accountability For AI Use by Market Infra Institutions, Intermediaries

Sebi proposed holding market institutions and intermediaries accountable for any consequences arising from their use of AI tools in client services.

Regulator Sebi on Wednesday proposed holding market infrastructure institutions and intermediaries accountable for any consequences arising from their use of artificial intelligence (AI) tools in operations or client services.

This includes ensuring data privacy, security, and integrity, particularly when handling sensitive investor information.

Additionally, the entity should also be accountable for any actions taken based on AI outputs, Sebi said in its consultation paper.