The Central Depository Services (India) Limited (CDSL) on June 05, 2026, notified regarding the Reporting of Artificial Intelligence (AI) and Machine Learning (ML) Applications and Systems.
The following has been stated:
• It has issued a communiqué directing all Depository Participants (DPs) to submit an annual report on Artificial Intelligence (AI) and Machine Learning (ML) applications and systems used in their operations, in line with regulatory requirements communicated by Securities and Exchange Board of India. The report for the financial year ended March 31, 2026, shall be submitted through CDSL's audit web portal on or before June 30, 2026.
• The reporting requirement is mandatory for all DPs, including those that do not use any AI/ML systems. Such entities are required to file a NIL report. The communiqué also reiterates the categories of technologies considered as AI/ML, including natural language processing (NLP), neural networks, machine learning models, decision-tree and clustering algorithms, feedback-based learning systems, and knowledge-based systems.
• Depository Participants using AI/ML applications must provide details of the systems deployed, their usage and implementation date in the prescribed format, while non-users must confirm non-usage through the reporting portal.
[Notification no. - CDSL/IS/DP/POLCY/2026/381]
