Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Jayesh Shah, CEO, Prism Cybersoft Private Ltd
- Mr. Shirsha Ghosh, Co-Founder, Torit Innovations
- Mr. Avro Mukerji, Investment Counselor- NRI Burgundy, Axis Bank
- Mr. Vikas R Panditrao, Advisor, Forum of Industry Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
Stockbrokers and depository participants using applications considering artificial intelligence (AI) will need to make quarterly disclosures on cyber safety framework regarding compliance. “With effect from quarter March 2019, registered stock brokers/ depository participant using AI / ML-based application or system have to fill out the form and make submissions on a quarterly basis within 15 calendar days from the expiry of the quarter,” Sebi stated in a circular, which is now a very hot topic in the broker community.
The market regulator directed stock brokers and depository individuals using applications based on artificial intelligence (AI) and machine learning (ML) to inform about its system- whether it conforms to regulator’s cybersecurity framework or not. In addition, they need to report in a structure- the execution of AI or ML system, safeguards in position to stop irregular behavior of the AI or ML application and whether the system broadcasts investment or trading advice or strategies and title of the application, among other people.
The directive came because of the regulator observing that AI/Machine Learning (ML) systems are black bins and their behavior cannot be effortlessly explained. “It is imperative to ensure that any advertised financial benefit owing to these technologies for products offered by intermediaries should not constitute to misrepresentation,” Sebi said.
The regulator is also conducting research and creating a record regarding the AI / ML landscape into the monetary markets to get in-depth insight for the usage of such technologies when you look at the markets and to make sure preparedness for just about any AI / ML policies which could develop later on.
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