SDF algorithmic due diligence and traffic-data localisation
Primary statement
SDF algorithmic due diligence per DPDPA Rule 13(3): SDFs must verify technical measures including algorithmic software are not likely to pose risk to Section 8/9 obligations. Rule 13(4) — traffic-data localisation for SDF. MeitY algorithmic transparency. EU AI Act + ISO 42001 + NIST AI RMF. SDF designation triggers additional algorithmic obligations.
Audit-fatigue payoff
A unified SDF algorithmic due diligence programme — algorithmic verification + traffic-data localisation + algorithmic transparency disclosures — satisfies SDF-specific obligations across all 5 contributing frameworks.
Strictness matrix
Scope
Scope: SDF's technical measures INCLUDING algorithmic software. Verification scope covers all material algorithms processing personal data.
Ceiling source: dpdpa:DPDP.33
Rationale: DPDPA Rule 13(3) algorithmic scope is uniquely strict.
Threshold
Threshold: due diligence to VERIFY algorithmic software not likely to pose risk to Section 8/9 obligations. Verification is the operational threshold — assumption insufficient.
Ceiling source: dpdpa:DPDP.33
Rationale: DPDPA Rule 13(3) verification threshold is the binary qualifier.
Method
Method: algorithmic verification methodology + per-algorithm due diligence records + integration with DPDPA SDF DPIA + traffic-data localisation per Rule 13(4) + algorithmic transparency disclosures per MeitY AIGG2025.6.
Ceiling source: dpdpa:DPDP.33
Rationale: DPDPA Rule 13(3) + (4) + MeitY combined are the most prescriptive.
Frequency
Algorithmic verification: per material algorithm + on material change. Annual review minimum.
Ceiling source: dpdpa:DPDP.33
Rationale: Per-algorithm + annual review is the audit-defensible cadence.
Evidence
Evidence: algorithmic verification methodology + per-algorithm records + traffic-data localisation evidence + transparency disclosures.
Ceiling source: dpdpa:DPDP.33
Rationale: DPDPA Rule 13(3) evidence is uniquely strict.
Auditor test pattern
Step 1: For SDF entities, inspect algorithmic verification methodology. Step 2: Sample one material algorithm; verify due diligence record. Step 3: Verify traffic-data localisation per Rule 13(4). Step 4: Verify algorithmic transparency disclosures.
Common findings
Common findings: (1) Algorithmic verification not started despite SDF designation; (2) Verification informal; (3) Traffic-data localisation absent; (4) Algorithmic transparency disclosures generic.