Settlement scheme for brokers over unregistered algo association extended by a month

Sebi Extends Settlement Scheme for Algo Platform Associations till October 16, 2025

Capital market regulator Sebi has extended its Settlement Scheme for Association with Certain Algo Platforms, 2025 by a month, in a relief to stock brokers facing regulatory proceedings over algorithmic trading associations.

Originally introduced on June 9, 2025, the scheme was designed to offer stock brokers linked to specific unregistered Algo platforms an opportunity to settle proceedings initiated by Sebi and pending before adjudicating officers, the Securities Appellate Tribunal (SAT), or courts.

The Scheme was initially valid from June 16, 2025 to September 16, 2025, but in view of growing interest from market participants, the regulator extended the deadline by another month. The new deadline for availing the settlement opportunity is now October 16, 2025.

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This extension is relevant for over 110 stock brokers - including several major players - who were issued show cause notices after Sebi’s investigation revealed widespread association with unregistered Algo platforms in violation of regulatory norms.

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Brokers who have already filed settlement applications in response to the Sebi show cause notices are not required to submit a fresh application. Instead, they must pay the specified settlement amount of Rs 1 lakh, along with a registration fee of Rs 29,500 (inclusive of 18% GST). Applicants are also required to submit scanned copies of an undertaking and waiver on judicial stamp paper, a self-attested copy of their PAN card, the application form for settlement, and applicable fees.