Stepping up its surveillance on mutual funds, Sebi Thursday asked fund houses to provide various details about artificial intelligence and machine learning-based systems used by them on a quarterly basis.
As most AI and Machine Learning (ML) systems are "black boxes" and their behaviour cannot be easily quantified, Sebi said it was imperative to ensure that any advertised financial benefit owing to these technologies in investor facing financial products offered by intermediaries should not constitute to misrepresentation.
