Sebi extends retail algo trading rollout, full compliance by April 2026

Mumbai, Sep 30, 2025

Sebi has extended the timeline for retail algo trading framework rollout, setting phased compliance milestones for brokers through 2025, with full compliance due April 2026

The Securities and Exchange Board of India (Sebi) has extended the timeline for implementing its framework on the safer participation of retail investors in algorithmic trading, providing stock brokers additional time to align their systems.

The framework, originally scheduled to take effect from August 1, was first deferred to October 1. However, Sebi said many brokers still require time to update systems based on recent clarifications and modifications issued by exchanges.

Under the revised plan, brokers ready with the required systems may go live from October 1.

Others will have to adhere to a glide path. By October 31, brokers must submit at least one retail algo product via API and apply for registration of at least one strategy with exchanges. By November 30, registration of multiple retail algo products and strategies must be completed. By January 3, 2026, brokers must participate in at least one mock session with the fully compliant functionality.

Sebi has cautioned that brokers failing to meet these milestones will be barred from onboarding new retail clients for API-based algo trading from January 5, 2026. Exchanges will also be responsible for monitoring broker compliance.

Additionally, brokers not going live from October 1 must disclose their existing client numbers as of September 30, 2025, in formats prescribed by exchanges.

The regulator clarified that the full framework, including implementation standards and operational modalities, will become applicable to all brokers from April 1, 2026.

[The Business Standard]