Legality of usage of Artificial Intelligence and Machine Learnings by Share Market Intermediary
DOI :
https://doi.org/10.15175/1984-2503-202315207Mots-clés :
Artificial Intelligence (AI), Machine Learning (ML), share market services, financial market services, share market IntermediatoryRésumé
Artificial Intelligence (AI) and Machine Learning (ML) are increasingly utilized in share market services due to significant efficiencies and benefits for companies and investors across the globe. This has resulted in an alteration in the firm’s business models and has a potential impact on the effectiveness of the share market and could harm investors. Indian share market is also witnessing the usage of this technology by market intermediaries. The present regulatory framework of Securities Exchange Board of India (SEBI) on share market intermediaries is not dealing with the Fintech/ technology 2.0-based products and services offered in retail trading and investment advisor platforms in India. The research is primarily based on the normative method presenting a qualitative analysis of the usage of AI & ML in various business models by share market intermediaries. How various share market regulators are addressing and regulating this technology usage and their judicial exposition. The paper concludes that the Indian share market is no exception & SEBI require to look at this new transformation and address the challenges posed by it. SEBI needs to take a proactive step to promote, guide & regulate usages of AI & ML which is gradually seeking the attention of Indian share market intermediaries into their business models and get the maximum benefit out of these technologies.
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