6-2-2025, India’s Securities and Exchange Commission notification India’s Securities and Exchange Commission (Depositors and Participants) (Amendment) Rules, 2025 To amend India’s Securities and Exchange Commission (Depositors and Participants) regulations in 2018. This provision will come into effect on 1-4-2025.
Key Points:
Regulation 9-A Related to “Unpaid, belated payments or short annual fee payments and interest on annual bills.” An introduction has been introduced that requires depositories to pay interest of 15% per month, delayed.
Regulation 82-AA Related to “Responsibility for using artificial intelligence” It was introduced:
if Depository institution Uses artificial intelligence and machine learning tools and techniques. The person is solely responsible for:
✓ Data that includes data that is maintained in the privacy/security and integrity of investor and stakeholder data and in fiduciary capabilities throughout the processes involved.
✓ Outputs arising from the use of such tools/techniques or trading.
✓Complies with applicable laws.
Such AI can be designed by SEBI or sourced from third-party technology service providers.
The term “AI and machine learning tools and techniques” is used in the following terms: “Artificial intelligence and machine learning tools and techniques” is intended to be used by or internally by the depository/stakeholder. Includes a program or executable system, or a combination thereof. Promoting transactions and settlements, or carrying out activities including compliance requirements, is portrayed as part of a product or usage that is generally offered for compliance or management or other business purposes. ”
