Can a SEBI-registered Research Analyst use AI tools, and must subscribers be told?
The two clauses in SEBI's rules, the exact words, when you should be told, and what to ask before you subscribe.
Published 3 November 2026 · Potoos Research Services
SEBI's rules cover this directly. Under Regulation 24(7) of the SEBI (Research Analysts) Regulations, 2014, an analyst who uses Artificial Intelligence tools is "solely responsible" for client data security, for research based on the tools' output, and for following the law. Under Regulation 19(vii), the analyst must disclose to clients "the extent of use of Artificial Intelligence tools". SEBI's master circular of 6 February 2026 says this disclosure comes with the terms of service, and again whenever required.
What the regulation says
Two clauses in the SEBI (Research Analysts) Regulations, 2014 deal with AI. The version on SEBI's site is amended up to 10 October 2026. Both clauses were inserted by the Third Amendment Regulations, 2024, with effect from 16 December 2024.
- Regulation 24(7), responsibility. "A research analyst or research entity who uses Artificial Intelligence tools, irrespective of the scale and scenario of adoption of such tools, for servicing its clients shall be solely responsible for the security, confidentiality and integrity of the client data, use of any other information or data for research services, research services based on output of Artificial Intelligence tools and compliance with any law for the time being in force."
- Regulation 19(vii), disclosure. "A research analyst or research entity shall disclose to the client the extent of use of Artificial Intelligence tools in providing research services."
What SEBI's master circular adds
SEBI's Master Circular for Research Analysts, dated 6 February 2026, repeats both rules in section 1.7, "Use of Artificial Intelligence ('AI') tools in RA services". It then says when you should be told: "A research analyst or research entity shall provide the disclosure of the extent of use of artificial intelligence tools by them in providing research services to their clients at the time of disclosing the terms and conditions of the research services to the client and make such additional disclosure whenever required."
SEBI's investor charter for Research Analysts, in Annexure D of the same circular, lists it among the disclosures an analyst gives you: "To disclose the extent of use of Artificial Intelligence tools in providing research services".
What this means for you
- The tool is never the excuse. "Irrespective of the scale and scenario of adoption" means the rule applies whether the tool did a little or a lot. The analyst stays solely responsible for the research.
- You should be told before you start. The disclosure comes with the terms and conditions, which you see before you subscribe.
- Your data is the analyst's job too. Regulation 24(7) puts the security, confidentiality and integrity of client data on the analyst when AI tools are used.
Questions to ask any analyst
- Do you use AI tools in your research or in serving clients?
- For which part: reading data, writing reports, or choosing the calls?
- Where is the extent of that use written in the terms I am agreeing to?
- What data of mine goes into those tools?
This page is published by Potoos Research Services, a SEBI-registered Research Analyst, registration INH000027380, Chennai. It explains SEBI's rule. It does not describe our own research process. Before you subscribe to any analyst, including us, ask the questions above and check where the answer is written in the terms.
How to check this yourself
-
Open the regulations
Tap this link to the SEBI (Research Analysts) Regulations, 2014, amended up to 10 October 2026. It opens a PDF on sebi.gov.in.
-
Find the two clauses
Regulation 19, "Disclosures in research reports", starts on page 17. Clause (vii) is at the end, on page 18. Regulation 24, "General responsibility", is on page 20. Clause (7) is the AI rule.
-
Open the master circular
Tap this link to SEBI's Master Circular for Research Analysts. Section 1.7 is on page 12. The investor charter, Annexure D, starts on page 67. The AI line is on page 68.
-
Check your own terms
Before you pay any analyst, open the terms and conditions they give you and look for the AI disclosure. If you cannot find it, ask them where it is.
Sources
- SEBI (Research Analysts) Regulations, 2014, last amended on 10 October 2026 (PDF: https://www.sebi.gov.in/sebi_data/attachdocs/oct-2026/1792127227860.pdf), Regulation 19(vii) page 18, Regulation 24(7) page 20: https://www.sebi.gov.in/legal/regulations/oct-2026/securities-and-exchange-board-of-india-research-analysts-regulations-2014-last-amended-on-october-10-2026-_105294.html
- SEBI, Master Circular for Research Analysts, HO/38/12/11(1)2026-MIRSD-POD/I/4360/2026, 6 February 2026 (PDF: https://www.sebi.gov.in/sebi_data/attachdocs/feb-2026/1770375507051.pdf), section 1.7 page 12, Annexure D page 68: https://www.sebi.gov.in/legal/master-circulars/feb-2026/master-circular-for-research-analysts_99571.html
Checked on 3 November 2026
Common questions
Can a SEBI-registered Research Analyst use AI tools?
SEBI's rules cover it directly. Regulation 24(7) of the SEBI (Research Analysts) Regulations, 2014 says an analyst who uses Artificial Intelligence tools, at any scale, is solely responsible for client data, for research based on the tools' output, and for following the law.
Must a Research Analyst tell subscribers it uses AI?
Yes. Regulation 19(vii) says the analyst shall disclose to the client the extent of use of Artificial Intelligence tools in providing research services.
When should I see the AI disclosure?
SEBI's master circular of 6 February 2026 says it is given at the time the analyst discloses the terms and conditions of the research services, with additional disclosure whenever required.
If an AI tool gets the research wrong, who is responsible?
The analyst. Regulation 24(7) makes the analyst solely responsible for research services based on the output of Artificial Intelligence tools, irrespective of the scale and scenario of adoption.
Since when have these AI rules applied?
Both clauses were inserted by the SEBI (Research Analysts) (Third Amendment) Regulations, 2024, with effect from 16 December 2024.