Algo Trading for Retail Traders has really NOT been a point of discussion for the regulator for years. But, there was a growing demand from the retail trading community.

There was nothing much on the regulatory front and that is why a lot of grey businesses were flourishing in this space for a long time.

SEBI has finally come up with a detailed circular on Algo Trading.

The circular defines, categorizes Algo Trading and sets up responsibilities of Exchanges, Stock brokers and Algo Providers.

It also talks about API and self-created algos by retail traders.

It discusses closed and open code based algo trading softwares too.

Brokers and exchanges would see it as a positive for it opens up new revenue streams and builds the current ones even further. For retail traders, mature algo trading softwares might help them in controliing their emotions-based losses.

This algo trading circular by SEBI seems one of the neatest works in the recent past that holds higher chances to go in the favor of retail traders.

Watch this video to understand:
SEBI's circular on Algo Trading
Categories of Algo Trading
Role of Traders, Brokers, Exchanges, Algo Providers
Permissions needed from the Exchanges
Timelines of the circular execution
Black market curbs etc

SEBI Circular on Algo Trading: www.sebi.gov.in/legal/circulars/feb-2025/safer-par…

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0:00 Algo Trading Opened for Retail Traders
0:46 Background on Algo Trading
1:37 Types of Algo Trading
4:09 Algo Approvals
4:56 White & Black Box Algos
6:16 Responsibilities of Stockbroker
8:02 Pros & Cons for Stockbroker
8:48 Responsibilities of Exchanges
9:41 Algo Trading Black Market