Algorithmic Trading
SEBI extends timeline by 1 mo on implementation standard for retail algo
This story was originally published at 21:36 IST on 1 April 2025
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NEW DELHI – The Brokers' Industry Standards Forum could not finalise by Tuesday the implementation standards for a new regulatory framework to facilitate retail investor participation in algorithmic trading through brokers. As a result, the Securities and Exchange Board of India has provided them a one-month extension to formulate the retail algo trading standards.
In a circular on Tuesday, SEBI said it had received a representation from stock exchanges to extend the timeline to finalise the implementation standards "as certain issues require further deliberation with the Brokers' ISF (industry standards forum)." SEBI said the implementation standards, as finalised within the extended timeline, will come into effect from May 1.
The markets regulator also said its detailed proposals with regard to the basis structure of the new regulatory framework on algo trading by retail investors made in its circular on Feb. 4 would be applicable with effect from Aug. 1.
Among the proposals made by SEBI on Feb. 4 was one on the use of application programming interface for algo trading. SEBI had said that brokers would be the principal while any algo providers or vendor would act as its agent using the programming interface provided by the broker. The market regulator also wanted stock exchanges to specify the empanelment criteria for algo providers and the brokers to carry out due diligence on an algo provider before onboarding it. End
Reported by Rajesh Gajra
Edited by Avishek Dutta
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