Sebi is expanding the timeline to roll out Algo -trade for retail investors

The Regulator of India’s Markets has expanded the timeline to roll out algorithmic trade for retail investors, giving stock agents more time to upgrade their computer networks to ensure safer participation.

Retail Algo Trading, with which investors can use automated strategies through computer programs, is offered via Application Programming Interfaces (APIs).

As part of the new GLIDEppad, brokers must apply for a registration of at least one Algo strategy at the stock exchange before 31 October.

The Securities and Exchange Board of India said that the complete registration of API-based retail algo products must be completed before November 30. To test the new systems, brokers must also participate in at least one fake trade session by January 3, 2026.

Brokers who do not reach these deadlines will be limited to new retail customers for API-based Algo Trading from 5 January, the regulator warned.

The measures follow the earlier circular of the SEBI that introduced rules for approval, following and regulating Algo -trade for individual investors. The framework requires that brokers are given prior permission from stock fairs for each algo and a unique identification in each order is required to maintain an audit trail. The relocation of the SEBI is amidst rising retail interest in algorithmic strategies, which offer faster version and lower costs. According to a SEBI research, algorithmic trade formed 97% of foreign investors and 96% of their own trader profits in futures and options during FY24.