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Guidelines on Responsible Use of Artificial Intelligence and Machine Learning in Securities Markets

SEBI's June 2025 principles-based AI/ML governance framework establishing India's first capital markets AI regulation requiring board-approved AI Governance Frameworks for market infrastructure institutions, intermediaries, and mutual funds; mandates six-pillar compliance (ethics, accountability, transparency, auditability, data privacy, fairness), explainability requirements, human oversight for critical market functions, and extensive documentation for supervisory review; consultation period closed July 11, 2025.

The AIACT.IN India AI Regulation Tracker

This is a simple regulatory tracker consisting all information on how India is regulating artificial intelligence as a technology, inspired from a seminal paper authored by Abhivardhan and Deepanshu Singh for the Forum of Federations, Canada, entitled, "Government with Algorithms: Managing AI in India’s Federal System – Number 70".

We have also included case laws along with regulatory / governance documents, and avoided adding any industry documents or policy papers which do not reflect any direct or implicit legal impact.

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June 2025

Issuing Authority

Securities and Exchange Board of India (SEBI)

Type of Legal / Policy Document

Guidance documents with normative influence

Status

Enacted

Regulatory Stage

Pre-regulatory

Binding Value

Guidance documents with normative influence

Related Long-form Insights on IndoPacific.App

Promoting Economy of Innovation through Explainable AI [VLiGTA-TR-003]

Legal-Economic Issues in Indian AI Compute and Infrastructure, IPLR-IG-011

NIST Adversarial Machine Learning Taxonomies: Decoded, IPLR-IG-016

Related draft AI Law Provisions of aiact.in

Section 16 – Guidance Principles for AI-related Corporate Governance

Section 20-A – Transparency and Accountability in AI-related Government Initiatives and Public-Private Partnerships

Section 21-A – Data Classification and Localisation Requirements

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