The Securities and Exchange Board of India’s (Sebi) new norms for retail participation in algorithmic (algo) trading will take effect from August 1. Investors looking to adopt this automated approach must first assess the pros, cons and risks of this trading method.
Mixed views
Reactions to the new norms are divided. Some believe they will improve transparency and security. “These norms promote accountability and reduce risk for retail investors,” says Rajesh Ganesh, founder and chief executive officer, TripleInt Trading Systems.
Others fear increased entry barriers. “The static IP requirement (a stable internet address) is impractical, especially for traders who use

)