Algorithm Trade

Sebi's draft guidelines aim to ensure safe, fair, and transparent use of AI and ML by exchanges, brokers, and mutual funds, with provisions for oversight, testing and privacy

The broking, wealth management industry is likely to see a consolidation phase over the next 6 to 9 months, driven by challenging market conditions, said Ashok Jain of Arihant Capital

Arbitrages of tiny price imperfections, and responses to news flow, such as quarterly results, are now controlled almost entirely by silicon

If you read Sebi regulations on investment advice, retail algos are illegal products

A cursory look at the algo creators will show that the very purpose of algos is to offer buy/sell recommendations, often marketed by making wild claims

Sebi's proposal to treat all APIs as algo trade is unwarranted

Says unapproved programmes pose risk to market and can be misused for systematic manipulation

Asks for reactions by month-end; aim to ensure 'level field' for non-algo investors