Why in News:

• The BSE has asked stock brokers who are using applications based on artificial intelligence (AI) and machine learning (ML) to submit compliance report in the format given by SEBI.

Details:

• The stock brokers were asked to report in a prescribed format about the implementation of AI or ML system to prevent abnormal behaviour of the AI or ML application and the system disseminated investment or trading advice or strategies and name of the application.

SEBI: 

• Securities and Exchange Board of India is a government established in 1988 authority which controls the securities market in India. Indian Parliament passed SEBI Act 1992 in 1992 India which made SEBI a statutory body.
• Securities and Exchange Board of India is administered by its board of members. The board of SEBI consist of:
• The Chairman by nominated by Government of India Two members from finance ministry
• One member from Reserve Bank of India
• Five members nominated by Union Government of India

Objectives

• To control activities of stock exchange
• To safeguard the rights of stockholders and also to guarantee the security of their investment
• To avoid fraudulence by harmonizing its statutory regulations and self-regulating business. To administer and develop guidelines for intermediaries.