Unlocking Algo Access: SEBI Opens Door for Retail Investors

SEBI is proposing new regulations to allow retail investors access to algorithmic trading. By extending the existing framework with additional safeguards, SEBI aims to ensure retail participation while maintaining market transparency and efficiency. Public comments are invited on the proposal until January 3.

The Securities and Exchange Board of India (SEBI) has unveiled a proposal aimed at empowering retail investors by granting them access to algorithmic trading, previously available only to institutional players.

The initiative seeks to enhance market efficiency and transparency through fast order execution and improved liquidity.

Retail investors could soon gain participation in this technology-driven trading method, which has predominantly benefited institutional investors, thus leveling the playing field with adequate safeguards.

(With inputs from agencies.)