India AI Financial Reporting Compliance Challenge

Context

Recently, the National Financial Reporting Authority (NFRA) in collaboration with India AI launched the India AI Financial Reporting Compliance Challenge.

About the India AI Financial Reporting Compliance Challenge

• Launched in partnership with the National Financial Reporting Authority (NFRA), this challenge seeks to harness the power of artificial intelligence (AI) to improve the quality of financial reporting in India, streamline compliance monitoring, and enable effective regulatory decision-making.
• The initiative aims to build a scalable regulatory technology infrastructure to protect public trust and investor interests.
• This challenge invites innovators to develop solutions that promote transparency in the financial ecosystem, simplify compliance processes, and protect privacy.

Objective

• The main objective of this challenge is to develop an AI-powered engine that can:
  • Extract content, tables, and financial data from multi-format documents (scanned and digital)
  • Divide documents into logical sections
  • Verify their completeness and compliance based on pre-defined frameworks
• This solution will structure document metadata and support search, analysis, visualization, and indexing, ensuring efficient retrieval and reference availability of unstructured source data.

Expected Output

• Compliance Verification Report Generator: An engine to test compliance against various regulations (e.g., RBI guidelines, SEBI norms) on large datasets and provide clear and interpretable reports on compliance and non-compliance for each provision.
• Automated Analytics Engine: A tool to automatically collect and analyze data on financial performance, risk indicators, audit history, and governance structures.
• Early Detection Tool: A system to identify and analyze real-time information related to news, enforcement actions, legal cases, and whistle-blower allegations.
• NFRA-Specific Insight Bot: An AI-enabled chatbot that provides intuitive query resolution through structured metadata and content chunking based on NFRA documents.
  • This bot will also assist in compliance analysis by combining reports, precedents, rules, and real-time regulatory signals, ensuring strict privacy and security in accordance with Indian and international data protection standards.

Applicants

• Indian Company: An Indian company registered under the Companies Act, with at least 51% stake held by Indian citizens or persons of Indian origin.
• Start-up: A start-up defined as per the latest notification from the Department for Promotion of Industry and Internal Trade (DPIIT), information on which is available on the Startup India portal.

Key Stages

• Stage 1: Initial Screening and Technical Evaluation
• Stage 2: Up to 10 selected teams will have the opportunity to participate in a virtual challenge round. Each team will be awarded ₹5 lakh and will be required to refine their solution on sample data provided through AIKosh.
• Stage 3: Up to 3 selected teams may be invited for a 5-day on-premise development round in New Delhi.
• One of these teams may receive a two-year work contract worth up to ₹1 crore to deploy their solution for NFRA.