SEBI Unveils Framework for Responsible AI and ML Applications in Securities Markets – NDTV Profit

The Securities and Exchange Board of India (SEBI) has proposed a set of guiding principles for the responsible application of artificial intelligence (AI) and machine learning (ML) in securities markets. Aimed at ensuring investor protection and market integrity, these principles emphasize transparency, accountability, and fairness. SEBI’s guidelines encourage a risk-based approach to AI/ML implementations, aiming to prevent market manipulation and ensure compliance with regulatory frameworks. Additionally, the principles stress the importance of periodic audits, data governance, and ethical considerations in the design and deployment of AI/ML models. Stakeholders, including market intermediaries and technology firms, are invited to provide feedback on these proposals, marking a significant step towards fostering a responsible and innovative use of technology in the financial sector. The move reflects recognition of the growing impact of AI and ML on trading and investment practices, highlighting the need for regulatory oversight to mitigate associated risks.

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