Reporting for Artificial Intelligence and Machine Learning applications and systems offered and used by Mutual Funds

May 14, 2019 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on May 09, 2019, has issued a Circular regarding reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications and systems offered and used by Mutual Funds in order to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 

The regulatory requirements are:

 All registered mutual Funds offering or using applications or systems as defined in Annexure B should participate in the reporting process by completing the AI and ML reporting form.

 From June 2019, the registered Mutual Funds using AI and ML based applications or system are required to fill in the form (Annexure A, Page 4) and make submissions on quarterly basis within 15 days of the expiry of the quarter to AMFI.

 AMFI shall consolidate the information on AI and ML applications and systems reported by Mutual Funds on quarterly basis and submit to SEBI at email id: [email protected] within 30 calendar days of the expiry of the quarter starting from the quarter ending June 2019.

AMFI shall also ensure the confidentiality is maintained regarding the information received by them from Mutual Funds.

[Circular No. SEBI/HO/IMD/DF5/CIR/P/2019/63]

Click here to download the Circular.

 


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