The comprehensive overhaul represents SEBI's commitment to maintaining a regulatory framework that evolves with market realities
SEBI has unveiled sweeping regulatory reforms in a consultation paper featuring 20 proposals designed to modernise stock brokerage operations while strengthening investor protection and market oversight
Data from the National Stock Exchange (NSE) shows that algos accounted for 57 percent of all trades done in the equity cash segment in April. In F&O, it was 70 percent in FY25.
Since the commission of algo providers/vendors is directly related to the brokerage earned by brokerages, algo traders may design strategies that generate more trades than good returns, say market insiders.
According to SEBI circular issued on February 4, implementation standards will be out in April and directions will come into effect from August.
Brokers can provide algo trading facility to retail investors only after obtaining requisite permission from stock exchanges for each algorithm, SEBI said in a circular
The facility of algo trading shall be provided by the stock broker only after obtaining requisite permission of the stock exchange for each algo, says SEBI
Sources close to the development told Moneycontrol that the market regulator is trying to crackdown on algo sellers who promise unrealistic returns
What’s caught the attention of many market observers is that many HFTs are now active in shares with a market capitalisation of less than Rs 500 crore.