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ARTICLE · 13 OCTOBER 2025

SEBI's Artificial Intelligence (AI) And Machine Learning (ML) Reporting Framework: Evolution And Harmonisation Across Indian Stock Exchanges

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Artificial Intelligence (AI) and Machine Learning (ML) technologies are reshaping India's securities markets. From algorithmic trading and predictive analytics to risk management and investor servicing, intermediaries...

IndiaTechnology
Aditi Rana
Aditi Rana

Introduction

Artificial Intelligence (AI) and Machine Learning (ML) technologies are reshaping India's securities markets. From algorithmic trading and predictive analytics to risk management and investor servicing, intermediaries now operate in an ecosystem increasingly driven by data and automation. While these systems enhance efficiency and liquidity, they also introduce regulatory risks relating to systemic stability, algorithmic opacity, and potential market manipulation.

Recognising these challenges, the Securities and Exchange Board of India (SEBI) introduced a structured reporting framework in 2019 to bring AI/ML-based systems within a formal supervisory regime. The framework does not seek to restrict innovation; rather, it ensures that technological adoption in trading and intermediary functions remains transparent, auditable, and accountable. Over time, this structure has been progressively refined by the stock exchanges, culminating in a harmonised,

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