India’s securities regulator SEBI is preparing a tiered framework for artificial intelligence and machine learning in capital markets. Chair Tuhin Kanta Pandey outlined human oversight, data controls and shutdown mechanisms in an October 10 speech. Regulated firms would retain responsibility for AI outcomes and model governance. Publication is expected shortly; the final requirements and implementation date have not been announced.
India’s Securities and Exchange Board, the capital-markets regulator known as SEBI, is preparing guidelines for responsible use of artificial intelligence and machine learning. Chair Tuhin Kanta Pandey outlined the approach in an October 10 address to a Bombay Stock Exchange brokers’ forum. Publication is expected shortly, with no effective date or final rule text announced.[1], [2]
Pandey describes a tiered approach with clearly assigned accountability, data controls, shutdown mechanisms and human oversight. He also proposes alignment with the supervisory toolkit of the International Organization of Securities Commissions, known as IOSCO, the international body for securities regulators. The outlined approach covers how systems are governed and controlled as technology changes market operations.[1], [2]
Regulated entities remain responsible for AI outcomes, data quality, model governance and cyber resilience, Pandey emphasized. His speech links technology with continued accountability and discusses business continuity and security across market infrastructure. The AI guidelines’ stated timetable is only forthcoming publication. A separate roughly one-week deadline in the broader speech concerns derivatives settlement rules, the AI framework has its own, unspecified publication timing.[1]
