Regulatory Alerts2025-04-01
Extension of timeline for formulation of implementation standards pertaining to SEBI Circular on Safer participation of retail investors in Algorithmic trading
The Securities and Exchange Board of India (SEBI) has extended the deadline for the Broker’s Industry Standards Forum to finalize implementation standards for safer retail participation in algorithmic trading. The revised schedule mandates that these standards come into effect on May 01, 2025, with full applicability of the circular's provisions commencing on August 01, 2025. Recognized stock exchanges are directed to implement necessary systems, amend relevant bye-laws, and disseminate these provisions to their brokers to ensure smooth market integration.
Page 1 of 2 CIRCULAR SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/46 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”
- SEBI had issued a circular on “Safer participation of retail investors in Algorithmic trading” on February 04, 2025.
- 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.
- 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’ ISF. 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,
Page 2 of 2 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 www.sebi.gov.in under the category: ‘Legal → Circulars’. Yours faithfully, Aradhana Verma General Manager Tel. No: 022 26449633 aradhanad@sebi.gov.in