Sebi Proposes Retail Access to Algorithmic Trading

The Securities and Exchange Board of India (Sebi) has proposed enabling retail investors to participate in algorithmic trading, which has been primarily accessible to institutional investors. This move aims to enhance market efficiency and transparency, offering retail investors faster order execution and improved liquidity with necessary safeguards.

The capital markets regulator, Sebi, has proposed extending access to algorithmic trading to retail investors. This move aims to level the playing field, offering expanded opportunities and advantages such as faster order execution and better liquidity previously available only to institutional investors.

Sebi's proposal includes a refined regulatory framework to ensure proper checks and balances, protecting the interests of retail investors. This shift could significantly enhance market efficiency and transparency while allowing stockbrokers to expand their clientele within a regulated environment.

Public feedback on these proposals is requested until January 3. The proposed changes could propel the retail trading sector by bridging the access gap, building trust, and potentially increasing profits among smaller investors who can now participate in algo trading.

(With inputs from agencies.)