Sebi may issue framework for algorithm trading soon: All details here

Industry players say Sebi should prevent the selling of algo programmes that promise sure-shot returns

Capital market regulator Securities and Exchange Board of India (Sebi) might soon issue a framework on algorithm (algo) trading for individual investors. Currently, there is no bar on retail investors from using algorithms. However, lack of regulatory guidelines is preventing progress in this area. Advancement in technology and availability of high-speed data on the go has resulted in a lot of development on this front globally.  An enabling framework by Sebi will help India catch up, say brokers.

What is algo trading?

Last October, Sebi issued a discussion paper titled ‘Strengthening of the Regulatory framework for Algorithmic Trading & Co-location.’