SEBI Chairman Tuhin Kanta Pandey told FICCI's capital markets conference that SEBI will soon issue tiered guidelines for AI and machine learning in securities markets, requiring kill switches, human-in-the-loop controls and data governance. He said every regulated entity stays fully responsible for AI tools it uses, whether built in-house or bought from vendors.
Why it matters
Brokers, fund managers and algo-trading firms in India should expect enforceable AI controls on top of SEBI's 2025 rule making them liable for AI outputs.
Line of Thought
Follow this story
Pick any item to keep going. Your path builds up above as a line you can share.
Curated lines through this story
Directly linked
Connections our researchers recorded
- DevelopmentRBI drafts model risk rules covering AI/ML for all regulated lenders24 Jun 2026 · Rule change · INFollows from: India's markets regulator follows the RBI in moving to hard AI controls such as kill switches
What led here
Earlier developments on the same thread
- DevelopmentEBA, EIOPA and ESMA tell EU finance to manage frontier AI cyber risk31 Jul 2026 · Statement · EU
- DevelopmentBank of England flags AI debt boom, circular financing and AI cyber threat7 Jul 2026 · Report · GB
- DevelopmentBoE, FCA and HM Treasury tell firms frontier AI cyber skills exceed human experts15 May 2026 · Statement · GB
- DevelopmentRBI publishes FREE-AI framework for AI in India's financial sector13 Aug 2025 · Report · IN
What happened next
Later developments on the same thread
- DevelopmentKansas City Fed's Schmid asks whether the AI ecosystem is becoming too big to fail25 Sep 2026 · Statement · US
Same story elsewhere
What other countries and bodies did on this
- DevelopmentMAS consults on AI risk management guidelines for all financial institutions13 Nov 2025 · Rule change · SG
- DevelopmentWashington law says only a licensed clinician can deny prior-authorisation requests23 Mar 2026 · Rule change · US-WA, US
- DevelopmentUS Treasury releases AI lexicon and finance-specific AI risk framework19 Feb 2026 · Policy · US
- DevelopmentFCA names Barclays, UBS, Experian and others in second AI Live Testing cohort21 Apr 2026 · Programme · GB
Rules in play
Laws and guidance this touches
- RuleSEBI Reg 16C (AI responsibility)IN · In force · 6 Feb 2025
- RuleRBI FREE-AI FrameworkIN · In force · 13 Aug 2025
Threads by topic: Financial risk Courts and liability AI agents