SEBI - Reporting for AI/ML Applications and Systems Used by Market Intermediaries, 2019
AI / PRIVACY / CYBER RELEVANCE
Direct AI-regulatory inventory; also asks about cybersecurity controls, system audits and safeguards against abnormal AI behaviour.
AI: Very HighPrivacy: ModerateCybersecurity: High
READ FIRST
- Scope definition
- reporting requirement
- Annexure A AI/ML categories
- Annexure B quarterly form
- cyber-control/system-audit fields
PURVIEW
Requires SEBI-regulated market intermediaries to report their use of AI/ML applications and systems. Its primary regulatory significance is transparency to the regulator: SEBI can identify where intermediaries rely on automated technologies and can assess associated operational, investor-protection and technology risks. For privacy and cybersecurity, the reporting obligation is useful because it encourages firms to maintain an internal inventory of AI systems, their business functions, data dependencies and technology providers, which is an essential starting point for risk-based AI governance.
Classification and legal status. Binding reporting circular for stock brokers, depository participants and covered market intermediaries.