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

NSE - Safer participation of retail investors in Algorithmic trading

05-May-2025 | NSE/INVG/67858

NSE has issued the circular regarding Safer participation of retail investors in Algorithmic trading.

This circular issued in reference to SEBI circular SEBI Circular Ref. no. SEBI/HO/MIRSD/MIRSD-PoD/P/2025/0000013 and NSE circular Ref. no. NSE/INVG/66524 regarding participation of retail investors in Algorithmic trading.

By virtue of this circular, NSE has specified the implementation standards on safer participation of retail investors in Algorithmic trading, which are formulated in accordance with para 7 (a) of the aforementioned SEBI Circular. Some of them are as follows:
1. When the clients have taken multiple API keys, the broker will ensure that non-registered algos are run only through one of the predefined API keys. Other API keys can be used only for registered algos.
2. The Threshold Order Per Second is initially set at not exceeding 10 orders per second per exchange /segment and may be adjusted by the stock exchanges as needed after due notice to the market. The broker may set its own threshold order per second limit at client level, not exceeding the current prescribed Threshold Order Per Second.
3. Exchanges shall issue appropriate tagging mechanisms for registered and registration free algo orders.

Please refer to the attached document for more information.

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