[ptrikha21]

The era of "black box" trading is facing a regulatory sunset.
Starting 1st of April 1, 2026, SEBI is making its retail algorithmic trading framework mandatory.
Every automated order must now carry a unique "Algo-ID", allowing exchanges to trace strategies back to their source.
While hobbyists staying under the "10 orders per second (OPS)" threshold get a breather, high-frequency players must register through brokers.
Brokers are now the "principals" legally responsible for any algorithmic tantrums.
Needs to be seen how this goes in India !

Based on a news in Hindustan Times.

Picture : taken from newspaper

20260328_094642.jpg (385.72 KiB) Viewed 16 times

#FinTech
#SEBI
#AlgoTrading

[Fergal]

It will be interesting to see what impact this has on financial markets. The potential that algorithms have to negatively affect the market is quite frightening.

[ptrikha21]

It will be interesting to see what impact this has on financial markets. The potential that algorithms have to negatively affect the market is quite frightening.

I think while trading within limits is fine, those who put more in F&O and Derivatives run higher risk.
I would try Algo Trading with big caution.
Not an early jumper !

[germainebull]

This is a prudent move by the SEBI. Traders have to follow some sort of protocol, to ensure fairness and transparency.

[ptrikha21]

This is a prudent move by the SEBI. ......

The move sounds good.
Yet, as I know the scene in India, any implementation needs a lot of on-ground supervision and scrutiny.
That is where SEBI would be really tested.