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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Extension of timeline for implementation of SEBI Circular on Safer participation of retail investors in Algorithmic trading

30-Sep-2025 | SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/132

SEBI has issued a circular extending the timelines for the implementation of the Algorithmic Trading Framework originally outlined in its circular dated February 4, 2025. By virtue of the circular, SEBI has further extended the deadline for the complete implementation of the framework aimed at ensuring safer participation of retail investors in algorithmic (Algo) trading. While stock brokers that are prepared with the necessary systems can begin implementation starting October 1, 2025, a phased approach has been introduced for those requiring additional time due to recent clarifications in operational procedures. This phased approach includes three key milestones: 1. Registration applications for retail algo products, along with at least one trading strategy, must be submitted by October 31, 2025 (Milestone 1). 2. The registration process must be completed by November 30, 2025 (Milestone 2). 3. Mandatory participation in a mock session that incorporates the new functionalities must occur by January 3, 2026 (Milestone 3). Stock brokers who do not meet these milestones will be prohibited from onboarding new retail clients for API-based algo trading starting January 5, 2026. Full implementation of the new algo framework will be required for all stock brokers as of April 1, 2026. For more details, please refer to the attached document.

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