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SEBI chief says AI/ML rules will mandate kill switches and human oversight

StatementFinanceINReported

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.

SourceOutlook MoneyCoverage: Moneylife Based on credible reporting; we could not open the primary document. Independently fact-checked on 7 Oct 2026.
SEBI

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