IND CDSL AI, Machine Learning Reports

On Jan. 5, IND CDSL, IND NSD updated on AI and machine learning.

  • IND CDSL provided an update on reporting for artificial intelligence (AI) and machine learning (ML) applications/systems offered and used by market intermediaries.
  • Follows IND NSD Oct. 2023 required submission of quarterly reports, see #168451.
  • Also follows SEBI Jan. 2019 issued requirements on artificial intelligence, see #51417.
  • Revised Timeline
  • Currently, depositary participants (DPs) using AI/ML based application/system have to fill in a form (annexure A) every quarter within 15 calendar days of quarter expiry.
  • New timeline requires yearly submission made within 3 months of financial year end.
  • Further, for applications and systems belonging but not limited to the categories of AI and ML technology, DPs may refer to annexure B of SEBI circular dated Jan. 4, 2019.
  • Report is mandatory for all DPs irrespective of whether they are using AI/ML systems or not; DPs not using AI and ML systems are required to submit NIL submission.
  • Effectiveness
  • Participants have to submit the AI/ML report on the e-PASS portal for financial year ended Mar. 31, 2024 onwards within three months of the end of the financial year.
  • Mar. 2024 IND BSE Submissions
  • On Mar. 28, 2024, IND BSE reminded that timeline for reporting of AI/ML applications and systems was revised in Dec. 2023 (#168451); members should submit details.
  • Trading members shall submit the details for the period ending Mar. 31, 2024, as per the applicability criteria given in the table, according to the type of intermediary.
  • Trading members offering or using applications or systems as defined in annexure B of SEBI's 2019 circular are required to submit the details in AI/ML reporting form.
  • Those who are not are also required submit the form, by selecting option No in BEFS.
  • The reports must be submitted electronically through BEFS by Apr. 15, 2024.
  • Apr. 2024 IND NSE Submissions
  • On Apr. 1, 2024, IND NSE required submissions re AI/ML applications and systems.
  • Trading members using algorithm software and other trading members shall submit reports for the period ending Mar. 31, 2024, as per the applicability criteria given.
  • All members are advised to ensure submission by Apr. 15, 2024.

Entity Types B/D; Depo; Exch; IA
Reference Cir 16/2024, NSE/COMP/61401, 4/1/2024; Nt 20240328-23, 3/28/2024; Com CDSL/A,I&C/DP/POLCY/2024/12, Cir NSDL/POLICY/2024/0003, 1/5/2024; Cir SEBI/HO/MIRSD/DOS2/CIR/P/2019/10, 1/4/2019; Comm CDSL/OPS/DP/POLCY/2019/12, 1/7/2019; Cir NSDL/POLICY/2023/0142, 10/5/2023;
Functions Compliance; Technology; Trade Reporting; Trading
Countries India
Products AI; Fund Mgt; Securities
Regions AP
Rule Type Final
Rule Date 1/5/2024
Effective Date 4/15/2024
Rule Id 197250
Linked to Rule :168451
Reg. Last Update 4/1/2024
Report Section International

Last substantive update on 04/04/2024