SEBI’s CGM Rajesh Dangeti Calls For AI Governance While Keeping Human Accountability Intact

A senior Securities and Exchange Board of India (SEBI) official has said that companies must strengthen Corporate Governance (CG) frameworks as artificial intelligence (AI) and digital technologies become more widely used, while ensuring that accountability remains with human decision-makers.

Speaking at the second National Conference on Agile Governance organised by FICCI, SEBI Chief General Manager (CGM) Rajesh Dangeti said governance should go beyond regulatory compliance and include oversight of AI, cyber resilience, data governance, operational resilience & sustainability and third-party risks. He noted that Boards should treat digital literacy and AI governance as core responsibilities rather than limiting them to technology teams.

Dangeti said companies remain responsible for decisions made using AI systems, including disclosures and market-related activities. He also stated that governance reflects boardroom judgement, transparency and leadership culture, not just compliance with regulations.

He added that SEBI is reviewing governance regulations and compliance frameworks to keep them aligned with changing market practices while maintaining transparency, accountability and investor protection.

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