New Delhi, Feb. 5 -- Algorithmic trading (algo trading), where automated systems execute trades based on programmed strategies, has long been a tool reserved for institutional investors.

However, with growing demand from retail investors, the Securities and Exchange Board of India (Sebi) has introduced a framework to allow retail investors to participate in algo trading safely.

Mint provides an overview of what this regulatory move means for retail investors and what steps are being taken to prevent potential risks such as market disruptions or unauthorized trades.

Algorithmic trading refers to the use of computer algorithms (automated trading systems) that can process large amounts of data and execute orders in fractions of a second. ...