SEBI has extended the deadlines for implementing its circular on “Safer participation of retail investors in Algorithmic trading.” Originally set for April 1, 2025, the implementation standards, to be formulated by the Broker’s Industry Standards Forum (ISF), will now be effective from May 1, 2025. The overall provisions of the circular will apply from August 1, 2025. This extension follows requests from Stock Exchanges for more time to address certain issues with brokers, ensuring a smoother transition and preventing market disruptions. Exchanges are directed to update their systems, amend relevant rules, and inform their brokers accordingly.
Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/46 Dated: April 01, 2025
To,
All Recognized Stock Exchanges
Stock Brokers through Recognized Stock Exchanges
Dear Sir/Madam,
Subject: Extension of timeline for formulation of implementation standards pertaining to SEBI Circular on “Safer participation of retail investors in Algorithmic trading”
1. SEBI had issued a circular on “Safer participation of retail investors in Algorithmic trading” on February 04, 2025.
2. In this regard, the implementation standards were to be issued by the Broker’s Industry Standards Forum (ISF), under the aegis of the Stock Exchanges and in consultation with SEBI by April 01, 2025.
3. SEBI has received a representation from the Stock Exchanges requesting for an extension of timeline to finalise the implementation standards, as certain issues require further deliberation with the Brokers’ Accordingly, in order to ensure smooth implementation of the framework, without any disruption to the market players and investors, it has been decided that:
a. The implementation standards shall come into effect from May 01, 2025.
b. The provisions of the circular shall be applicable with effect from August 01, 2025.
4. Exchanges, are hereby, directed to:
a. take necessary steps and put in place necessary systems and procedures for implementation of the above.
b. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions.
c. bring the provisions of this circular to the notice of their brokers and disseminate the same on their website.
5. This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, read with Section 30 of the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992 to protect the interests of investors in securities, to promote the development of and to regulate the securities market.
6. This circular is available on SEBI website at sebi.gov.in under the category: ‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
