
Taxmann Professionals
February 14, 2025 at 12:12 PM
*Taxmann's Analysis | From Institutions to Individuals – SEBI to Open the Algo Trading Gates for Retail Investors*
SEBI has proposed a regulatory framework to enable retail investors to participate in algorithmic trading safely and transparently. The framework mandates API-based algo trading, categorises algorithms into White Box (transparent) and Black Box (restricted), and defines roles & responsibilities for brokers, exchanges, and algo providers. This article explores several key focus areas, including:
‣ Meaning of Algorithmic Trading
‣ Current Regulatory Landscape
‣ SEBI’s Rationale for Extending Algo Trading to Retail Investors
‣ Proposed Framework and Safeguards
‣ Opportunities for Retail Investors
‣ Risks and Challenges in Algo Trading
‣ Implementation Timeline and Next Steps
Download/Read More: https://taxmann.social/naIAN [10 Mins | Read Time]
Authored by Isha Bathla – CS, MBA | Taxmann's Advisory & Research Team [Corporate Laws]
#taxmannupdates #taxmannadvisory #sebi #algorithmictrading #retail #investors