New Delhi, Feb. 8 -- SEBI has introduced a regulatory framework for retail algorithmic trading through brokers, effective August 1, 2025. The framework requires brokers to oversee API-based algo trading, empanel algo providers, and ensure compliance with stock exchange norms. Brokers must review, approve, and monitor algos for transparency, risk management, and investor protection.

They must also disclose execution statistics and alert clients about potential risks. Unregistered third-party algo providers cannot claim guaranteed returns, and all retail algos must operate under broker supervision. These measures aim to standardize algo trading, prevent misuse, and protect retail investors.Algo trading: A new era for retail investors

Algo...