Retail Algo Trading Gets Safer, SEBI Sets New Guidelines; New Standards Aim To Protect Retail Investors

Mumbai: In a continued effort to regulate algorithmic trading, SEBI issued a circular on February 4, 2025, mandating safeguards for retail investors participating through broker-provided platforms. This initiative focuses on enhancing transparency and reducing risks.

Exchange Action

BSE, in its Notice No. 20250506-3 dated May 6, 2025, has reiterated its commitment to enforcing SEBI’s directive. The exchange has published a set of implementation standards aligned with para 7(a) of the SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/0000013.

Read Also

SEBI, Finance Ministry Working On Centralised KYC System To Simplify Access Across Institutions

What's New

FPJ Shorts

Palghar Guardian Minister Ganesh Naik Reviews Flood-Hit Villages, Inspects Road Works In Wada And Jawhar

West Bengal CM Mamata Banerjee Slams 130th Constitutional Amendment Bill, Calls It ‘More Than Super-Emergency’

UP Urea Smuggled To Nepal, Sold At Exorbitant Rates

UP Govt Warns Against Black Marketing Of Fertilizers, Assures Adequate Stock

The standards specify procedures for brokers and registered vendors offering algo trading to retail clients. These include clearer disclosures, pre-approvals, and system-level validations to prevent misuse. This move is seen as a necessary step toward responsible automation in retail trading.

Read Also

T-Bill Auction Notification, Non-Competitive Bidding Facility Open Via BSE

Who Must Act

Trading members and registered vendors must now ensure compliance with these standards and are urged to review the Annexure provided with the notice for complete details.