Sebi's new framework empowers retail investors
SEBI just rolled out a new framework that lets regular investors use algorithmic trading in the Indian stock market.
Now, you don't need to manually approve every trade—algos can handle things on their own.
The goal: make investing simpler and quicker for everyday traders.
Key features of the new framework
Every trading algorithm now gets a unique ID, so trades are easy to track.
SEBI splits algos into "white box" (fully transparent) and "black box" (proprietary but with research disclosures).
To keep things safe, there are checks like IP whitelisting and broker monitoring.
Expected impact on Indian stock markets
This move could help more people invest by lowering barriers and making trading less emotional—since algorithms stick to the plan.
With better safety measures, it's expected to boost confidence, bring in more retail investors, and make markets more active across India.