SEBI - Framework for Adoption of Cloud Services by SEBI Regulated Entities
AI / PRIVACY / CYBER RELEVANCE
Directly relevant to LLM/API/cloud-hosted AI, including data ownership, encryption and third-party AI providers.
AI: HighPrivacy: HighCybersecurity: Very High
READ FIRST
- Data ownership/localisation
- security controls
- CSP due diligence
- monitoring
- contractual responsibilities
PURVIEW
Establishes SEBI’s framework for regulated entities adopting cloud services, addressing governance, security, outsourcing, data, operational resilience, auditability and third-party risk. Its importance for AI is substantial because modern AI systems commonly depend on public or private cloud infrastructure for model training, storage, compute, inference, logging and API delivery. Cloud concentration can also create confidentiality, availability and cross-system dependency risks. The framework therefore provides the technology-governance foundation within which AI workloads should be hosted, including appropriate security controls, vendor oversight, data protection, resilience, contractual safeguards and regulator access to relevant information.
Classification and legal status. Binding sectoral circular/framework for SEBI-regulated entities in scope.