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SEBI AI/ML Compliance

Enterprise Feature

Full SEBI AI/ML Guidelines compliance with automated enforcement is available in AxonFlow Enterprise. This page provides an overview of SEBI requirements and how AxonFlow helps you comply.

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Overview​

The Securities and Exchange Board of India (SEBI) issued the Framework for Adoption of AI/ML in Securities Market in 2024, establishing comprehensive guidelines for AI/ML systems used by market intermediaries, asset managers, and trading platforms.

AxonFlow provides built-in compliance features to help financial services organizations in India meet SEBI AI/ML Guidelines and the Digital Personal Data Protection (DPDP) Act 2023.

Regulatory Requirements​

SEBI AI/ML Guidelines (2024)​

The framework mandates:

  1. Audit Trail - Complete logging of all AI/ML decisions
  2. Explainability - Ability to explain AI-driven decisions
  3. Data Privacy - Protection of sensitive financial and personal data
  4. Human Oversight - Human review for high-risk decisions
  5. Model Governance - Version control and change management
  6. Risk Management - Continuous monitoring and circuit breakers

DPDP Act 2023​

Additional requirements for personal data:

  • Consent management for data processing
  • Purpose limitation for data use
  • Data localization within India
  • Breach notification within 72 hours
  • Right to erasure implementation

Community vs Enterprise Features​

FeatureCommunityEnterprise
Audit logging✅✅
Policy enforcement✅✅
PAN number detection✅✅
Aadhaar number detection✅✅
Basic PII redaction✅✅
5-year audit retention✅
SEBI audit export formats✅
Compliance dashboard✅
Automated compliance scoring✅
Human-in-the-Loop queue✅
Regulator-ready reports✅

Indian PII Detection (Community)​

AxonFlow Community includes built-in detection for Indian PII:

PAN Number Detection​

Permanent Account Number - 10-character alphanumeric identifier:

Format: AAAPL1234C
         ^^^ ^    ^
         ||| |    +-- Check letter
         ||| +------- 4 digits
         ||+--------- 5th letter (surname initial)
         |+---------- Entity type (P/C/H/A/B/G/J/L/F/T)
         +----------- 3 letters

Entity Types:

  • P - Individual (Person)
  • C - Company
  • H - Hindu Undivided Family
  • F - Firm
  • T - Trust

Aadhaar Detection​

12-digit unique identification number:

Format: 2345 6789 0123
        ^
        +-- First digit always 2-9 (never 0 or 1)

Configuration​

# Enable Indian PII detection (enabled by default)
policies:
  pii_detection:
    enabled: true
    patterns:
      - pan
      - aadhaar
      - credit_card
      - email
      - phone

Enterprise Compliance Features​

5-Year Audit Retention​

SEBI mandates retention of all AI/ML decision logs for 5 years:

# Enterprise configuration
compliance:
  sebi:
    enabled: true
    retention_days: 1825  # 5 years
    export_formats:
      - json
      - csv
      - xml

SEBI Audit Export​

Export compliance data in regulator-accepted formats:

# Export audit data for SEBI submission
curl -X POST https://your-axonflow.com/api/v1/sebi/audit/export \
  -H "Authorization: Bearer $TOKEN" \
  -d '{
    "start_date": "2024-01-01",
    "end_date": "2024-12-31",
    "format": "xml",
    "include_decisions": true,
    "include_model_versions": true
  }'

Compliance Dashboard​

The Enterprise Customer Portal includes a dedicated SEBI compliance dashboard:

  • Compliance Score - Real-time compliance health
  • Violation Tracking - Policy violations by category
  • HITL Metrics - Human review queue statistics
  • Audit Trail - Searchable decision logs
  • Export History - Previous regulator submissions

Human-in-the-Loop (HITL)​

Route high-value or high-risk decisions for human review:

# HITL configuration for financial thresholds
hitl:
  enabled: true
  triggers:
    - condition: "transaction_value > 1000000"  # ₹10 lakh
      reason: "High-value transaction"
    - condition: "risk_score > 0.8"
      reason: "High risk score"
    - condition: "cross_border == true"
      reason: "Cross-border transaction"

Implementation Checklist​

Getting Started (Community)​

  1. ✅ Enable audit logging
  2. ✅ Configure PII detection (PAN, Aadhaar)
  3. ✅ Set up policy enforcement
  4. ✅ Implement basic data redaction
  5. ✅ Review audit logs regularly

Full Compliance (Enterprise)​

  1. ✅ All Community features
  2. ✅ Configure 5-year retention
  3. ✅ Set up SEBI export pipeline
  4. ✅ Configure HITL triggers
  5. ✅ Enable compliance dashboard
  6. ✅ Schedule automated compliance reports
  7. ✅ Conduct quarterly compliance review

AxonFlow's SEBI compliance features also help with:

  • RBI Guidelines - Reserve Bank of India AI/ML guidelines
  • IRDAI Guidelines - Insurance sector AI requirements
  • PFRDA Guidelines - Pension fund AI governance
  • DPDP Act 2023 - Data protection compliance

Resources​

Get Started​

For full SEBI compliance capabilities: