SEBI Consultation Paper on guidelines for responsible usage of AI/ML

SEBI has issued a Consultation Paper on “Modification of Unique Client Code by Market Makers of ETFs and certain institutional and non institutional clients including clients clearing through custodians without levy of penalty to solicit comments/ suggestions/ views from public on permitting client code modification by the Market Makers (MMs) to the Asset Management Company (AMC), viz. associated ETF scheme(s), without levy of any penalty, in order to enable MMs to transact in the basket for securities under lying the ETF against equivalent transaction in units of ETF and to transfer the net obligation of such transactions to the ETF for unit creation/
redemption. Considering the implications of the said proposals on market participants, public comments are invited latest by July 11, 2025 via online platform.

To solicit comments from stakeholders and members of public on the proposed guiding principles for responsible usage of Artificial Intelligence (AI)/ Machine Learning (ML) applications/models in securities markets. These guiding principles are intended to optimise benefits and minimise potential risks associated with integration of AI/ML based applications in securities markets to safeguard investor protection, market integrity, and financial stability.