SEBI delays start of algo trading for retail investors
SEBI has postponed the start of algorithmic trading for regular investors, giving brokers extra time to get their systems ready and meet new safety rules.
What is algorithmic trading?
Algorithmic trading lets computers handle trades automatically—making things quicker and often cheaper.
Soon, everyday investors in India will be able to use these tools through their brokers, which SEBI hopes will increase transparency and investor protection.
Brokers get more time to register strategies
Brokers now need to register at least one algo-trading strategy by October 31 and finish full registration by November 30.
They also have to run mock trades by January 3, 2026.
If they miss these steps, they can't sign up new clients for API-based algo trading from January 5, 2026.
New rules for a safer trading experience
SEBI's new rules bring in stricter checks—like broker approval for every algorithm, unique order IDs for tracking trades, two-factor authentication, and fixed IP addresses.
This phased rollout is meant to help everyone adjust smoothly as automated trading gets bigger in India.