SEBI chairman Tuhin Kanta Pandey says the regulator will issue new guidelines governing how artificial intelligence is used in India’s capital markets. The proposed rules are intended to set “guardrails” for responsible AI adoption, with an emphasis on investor protection.

Across the reports, the guidelines are described as requiring disclosures and accountability from regulated entities, along with a “human-in-the-loop” approach. Two outlets also add that SEBI is working to strengthen its own AI-related capabilities, including through international initiatives and supervisory toolkits.

One report further mentions that a working group is being initiated connected to SEBI’s Innovators Growth Platform for startups, placing the effort in the broader context of how innovation and regulation may interact.