As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/0000013 dated February 04, 2025 Retail investors shall be eligible to place Algorithmic Trading orders using Application Programming Interface (API) of the Trading Member. Algorithmic orders shall be defined as orders generated using automated execution logic. Exchange shall permit following Algo categories:
a) Algo where logic is disclosed and replicable i.e. Execution Algo or White box Algo
b) Algo where the logic is not known to the user and is not replicable, i.e. Black box Algo
The facility of Algo trading shall be provided by the Trading Member only after obtaining requisite permission of the stock exchange for each Algo. Algo developed by tech-savvy retail investors themselves, using programming knowledge, shall also be registered with the Exchange, through their broker, only if they cross the specified order per second threshold defined by the Exchange from time to time. It is to be noted that existing compliance prescribed with regard to Algorithmic trading shall be applicable.
The provisions of this circular shall be applicable with effect from August 01, 2025.
I. New Retail Algo Vendor empanelment - Algo Provider / CTCL Vendor(Retail Algo)
| Sr.No. | Particulars | Link | |
|---|---|---|---|
| a | Apply as Empaneled Retail Algo Provider / CTCL Vendor (Retail Algo) | ||
| Click here for format of document/checklist |
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| b | Registration of Retail Algo Strategy | ||
| Click here for format of document/checklist |
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II. Registration of New Retail Algo Software by Trading Member
| Sr.No. | Particulars | Link | |
|---|---|---|---|
| a | Registration of Retail Algo Strategy developed by empaneled Algo Provider / CTCL Vendor | ||
| Click here for format of document/checklist |
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| b | Registration of Retail Algo Strategy developed In-House | ||
| Click here for format of document/checklist |
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| c | Registration of Retail Algo Strategy developed by Retail investor | ||
| Click here for format of document/checklist |
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