A credible securities regulatory regime derives its authority not from the severity of its penalties, but from their predictability, coherence, and constitutional legitimacy.

The article explores the challenges and shortcomings of SEBI’s proposed AI/ML liability framework, particularly its reliance on senior management accountability, while suggesting alternative governance models informed by global best practices, and aims to contribute to the ongoing discourse on corporate and commercial law and aims to contribute to the ongoing discourse on corporate and commercial law.