Sebi Chairman Tuhin Kanta Pandey warns that as algorithmic and high-frequency trading grow, intermediaries must balance speed with safety, ensure compliance, and protect investor trust
Sebi has extended the timeline for retail algo trading framework rollout, setting phased compliance milestones for brokers through 2025, with full compliance due April 2026
The guidelines issued on Tuesday mandate registering all algo strategies, which will be given unique identification (ID)
High-frequency trading firms are setting up offices in GIFT City to avail stamp duty refunds under Gujarat's incentive scheme, with Sebi easing IFSC registration norms
Sebi announces a settlement window for brokers linked with unauthorised algo platforms promising assured returns; applications open from June 16
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
Standards align with Sebi's February norms mandating API rules and registration to close regulatory gaps and protect retail investors in algorithmic trading
Share of algorithms in cash market turnover crosses 50% in FY25
Under the new norms, open APIs will not be permitted. Access will be granted only through a unique vendor client to ensure identification and traceability
Algorithmic trading refers to investing through computer programmes which can trade faster and more efficiently than a human being with limited intervention, connecting with broker platforms
Under the proposal, stock brokers can offer such a facility to retail investors only after getting each program approved by the stock exchanges
What are the implications of Rupee staying beyond 80? Is it the beginning of the end of diesel cars in India? Is the recent selling in markets overdone? What is algorithmic trading? All answers here
SEBI recently issued guidelines for stock brokers who provide algorithmic trading services. What exactly is algo trading? Watch our next report to know more
Sebi chairperson Madhabi Puri Buch on Wednesday said any business on the 'black box' model that cannot be audited or validated will not be permitted. She also said since data is a public infrastructure, any attempt by any private party to own them cannot be tolerated. "We are not for or against algo trading as long as there is sufficient transparency and disclosures. Business models cannot rely on a black box which is not open to sunlight.. therefore any claim that cannot be audited and validated cannot be permitted," Buch said addressing the Global Fintech Fest here this morning. The warnings from the markets regulator come amid reports that it may clamp down on algo trading, which in the past has been misused by certain brokers with the connivance of top NSE officials. Earlier this month, Sebi had issued new guidelines for stock brokers providing algorithmic trading services after it was found that certain stock brokers provide algorithmic trading facilities to investors through
Regulator in touch with exchanges, set to accept proposals made in discussion paper
The case dates back to a period between 2009 and 2016 when the exchange engaged with Ajay Shah and Infotech Financial Services
"These platforms are unregulated and thus there is no investor grievance redressal mechanism covering their activities," Sebi said.
The new limit will be effective from April 1, the Securities and Exchange Board of India (Sebi) said in a circular
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