Sebi may soon introduce framework on retail algo amid concerns of misuse

Regulator in touch with exchanges, set to accept proposals made in discussion paper

The Securities and Exchange Board of India (Sebi) may soon issue a framework on regulating algorithmic (algo) trading for retail investors amid concerns over manipulative practices, said people in the know.

The framework will be based on a discussion paper floated by the markets regulator in December despite pushback from the broking industry on certain recommendations — particularly the one around algo trades emanating from application programming interface (API).

Sources said Sebi and stock exchanges are working on a framework to authorise and approve algo strategies and provide each with a unique identification number to get a better handle on