SEBI proposes AI disclosure for investment advisers and analysts for transparency and data security.
Securities and Exchange Board of India (SEBI) proposes that registered investment advisers (IAs) and research analysts (RAs) disclose their usage of artificial intelligence (AI) tools to clients for transparency, enabling informed choices. SEBI highlights the growing use of AI tools in IA and RA services, emphasizing the need for strong security measures to avoid unintended data exposure. Responsibility for data security and compliance lies solely with the IA/RA, irrespective of AI tool usage scale or scenario. SEBI also considers creating a closed ecosystem for fee collection by registered IAs and RAs to ensure investors avoid unregistered entities.
August 15, 2024
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