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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" dated February 04, 2025

29-Jul-2025 | SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/108

SEBI has issued a circular regarding the extension of timeline for implementation of SEBI Circular "Safer participation of retail investors in Algorithmic trading" from 1st August 2025 to 1st October 2025.

Key Highlights-

1. SEBI aims to enhance retail investor protection in algorithmic trading.
2. Brokers are required to obtain requisite permission of the stock exchange for each algo in order to provide facility of algo trading.
3. Stock Exchanges are required to specify the empanellment criteria for the algo providers.
4. Two Categories of Algos are specified which are - "white box" (logic disclosed) or "black box" (logic undisclosed, requiring research analyst registration).
5. Brokers shall be solely responsible for handling investor grievances related to algo trading and the monitoring of APIs for prohibited activities.

Please refer to the attached document for more information.

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