Over 100 stock brokers settle Sebi case on misleading algo returns claims

Brokers including Zerodha and Angel One pay ₹1 lakh each to settle case over links with algo platforms that claimed guaranteed or consistent returns

111 stock brokers, including leading names such as Zerodha, Angel One, and Motilal Oswal Financial Services, have settled a matter with the Securities and Exchange Board of India (Sebi) for associating with algo platforms that mentioned guaranteed returns or consistent profit in their algo strategies.

 

The association of the stock brokers with platforms making such claims was allegedly found to be in violation of market regulations. Sebi had initiated adjudication proceedings against 122 stock brokers who were observed to have integrated their APIs with such algo platforms.

 

The stock brokers who have availed the scheme have paid ₹1 lakh each for the settlement.

 

 

Due to the significant number of stock brokers involved, the regulator had brought a settlement scheme, which was open from June 2025 to October 2025, where stock brokers showed interest in availing the settlement.