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SEBI unveils framework for safer retail participation in algorithmic trading
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
Algorithmic trading (algo trading) leverages automated systems to process large data sets and execute trades in fractions of a second, offering advantages such as improved speed, reduced costs, and better liquidity. Recently, SEBI’s regulatory framework, effective from February 4, 2025, allows retail investors to participate in algo trading through registered brokers, with each strategy requiring exchange approval. Retail investors may incur costs like subscription fees for third-party services and necessary hardware/software, while brokers face application and administrative fees for approval.
India’s foreign exchange reserves increased by $1.05 billion, reaching $630.607 billion
India’s foreign exchange reserves (Forex) saw a rise of $1.05 billion, bringing the total to $630.607 billion. This increase reflects a strengthening of the country’s external assets, which include foreign currency assets, gold reserves, special drawing rights (SDRs), and the Reserve Position in the International Monetary Fund (IMF). Forex reserves play a crucial role in maintaining exchange rate stability and supporting international trade.
Several AMCs have launched NFOs across various themes
Several AMCs have launched new fund offers (NFOs) across various themes. SBI AMC introduced SBI Nifty IT Index Growth, while Invesco AMC launched Invesco India Business Cycle Growth. ITI AMC unveiled ITI Bharat Consumption Growth, and Bajaj AMC introduced Bajaj Finserv Multi Cap Growth.
HSBC AMC launched HSBC Financial Services Growth, and Motilal Oswal AMC introduced Motilal Oswal Innovation Opportunities Growth. HDFC AMC rolled out HDFC Nifty100 Quality 30 Index Growth, while Edelweiss AMC launched Edelweiss Consumption Growth.
These funds cater to different sectors and investment strategies, offering investors opportunities to diversify their portfolios.
Kuvera is a free direct mutual fund investing platform. Unless otherwise stated data sourced from BSE, NSE and kuvera.
