Article
Adoption of Artificial Intelligence in the FinTech sector: A regulatory overview
The evolution of partnerships between banks and financial technology (‘FinTech’) companies is facilitating the widespread adoption of advanced technologies, including artificial intelligence (‘AI’), machine learning (‘ML’) and Generative AI (‘GenAI’) in the financial sector. The article in this issue of Corporate Amicus discusses how Banks and financial institutions are leveraging AI in the financial sector for customer onboarding, periodic monitoring, customer engagement, credit risk assessment, cybersecurity and compliance. The authors (Sameer Avasarala and Aryashree Kunhambu) also discuss the regulatory and compliance risks like issues related to intellectual property, transparency, accountability, contractual risks, data privacy, and cyber risks. According to them, adopting a ‘principles-based’ and ‘technology-neutral’ framework that prioritizes transparency, explainability and privacy-by-design may likely be a suitable approach for regulating AI systems without inhibiting innovation and protecting customer interests.
Notifications and Circulars
- SEBI LODR Regulations amended for third time in 2024
- Regulatory arbitrage with respect to Offshore Derivative Instruments and FPIs addressed
- SEBI introduces relaxation from the ISIN restriction limit for issuers desirous of listing originally unlisted ISINs
- Corporate Debt Market Development Funds classified as Category I Alternative Investment Funds
- Interest rate ceiling for Foreign Currency (Non-resident) Accounts (Banks) [FCNR(B)] deposits increased
- Industry Standards for reporting of Business Responsibility and Sustainability Report (BRSR) Core released
Ratio decidendi
- Performance Pay’ is not covered within the definition of ‘Operational Debt’ under IBC Section 5(21) – NCLAT, Chennai
- Company or the new management cannot be prosecuted for offences by erstwhile management before approval of Resolution Plan – Delhi High Court
- Funds deposited in Court prior to initiation of CIRP remain assets of the corporate debtor, subject to collective insolvency proceedings, despite debtor not being in physical possession – Bombay High Court
- ‘Maintainability’ and ‘Jurisdiction’ are distinct legal concepts and cannot be conflated when deciding an application under Section 20 of Arbitration Act, 1940 – Bombay High Court
- Scope of jurisdiction with respect to contempt of court does not extend to execution of orders – Supreme Court
News Nuggets
- SEBI refuses to clear PUSTA regulations
- Labour Ministry mulls bringing social security coverage for gig and platform workers
- Surveillance on Chinese companies disguised as RMG operators intensified
- Government joins hands with Flipkart to boost startup growth in the country
- CCI approves India Cements acquisition
