Sebi seeks public feedback on criteria to designate specified digital platforms | Stock Market News

SEBI issued a circular inviting public feedback on the proposed regulatory framework for specified digital platforms (SDPs). These platforms employ AI/ML to automate investment advice and trading strategies, raising concerns about investor protection and illegal activities. SEBI is particularly focused on protecting retail investors from algorithms offering unrealistic returns, misuse of customer data, and violation of KYC norms. The circular aims to regulate SDPs through better transparency, mandating audits, and requiring platform disclosures. The move is part of SEBI's broader effort to address the growing influence of AI in financial markets and safeguard investors.