Date: 2025-04-01Category: Not ApplicableState: Union GovernmentCountry: India
Extension of timeline for formulation of implementation standards pertaining to SEBI Circular on “Safer participation of retail investors in Algorithmic trading”
**Summary:**
This circular, reference number SEBI/HO/MIRSD/MIRSD-PoD-P/CIR/2025/46, issued by the Securities and Exchange Board of India (SEBI) on April 01, 2025, addresses an extension of the timeline for formulating implementation standards related to the SEBI circular on safer retail investor participation in algorithmic trading, originally issued on February 04, 2025.
The initial deadline for the Brokers Industry Standards Forum (ISF), under the aegis of the Stock Exchanges and in consultation with SEBI, to issue implementation standards was April 01, 2025. Due to requests from the Stock Exchanges citing the need for further deliberation with the Brokers ISF on certain issues, SEBI has extended the timeline.
As a result of this extension:
* The implementation standards will now come into effect from May 01, 2025.
* The provisions of the original circular will be applicable from August 01, 2025.
Recognized Stock Exchanges are directed to take necessary steps to implement the changes, amend relevant byelaws, rules, and regulations, and disseminate the information to their brokers and on their websites.
This circular is issued under the powers conferred by Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, and Section 30 of the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992. The circular is available on the SEBI website under the category "Legal Circulars."
For further information, contact Aradhana Verma, General Manager, at Tel. No: 022 26449633 or via email at aradhana[at]sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): Regulatory body that issued the circular
All Recognized Stock Exchanges: Addressees of the circular, responsible for disseminating information to brokers
Stock Brokers: Entities regulated by the stock exchanges and subject to the circular's provisions
Brokers Industry Standards Forum (ISF): Forum responsible for formulating implementation standards related to algorithmic trading
Safer participation of retail investors in Algorithmic trading: Subject of the SEBI circular and the implementation standards
Securities and Exchange Board of India Act, 1992: Law under which the circular is issued
Securities and Exchange Board of India Stock Brokers Regulations, 1992: Regulations referenced in the circular's issuance
Aradhana Verma: General Manager at SEBI, signatory of the circular
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”
1. SEBI had issued a circular on “Safer participation of retail investors in
Algorithmic trading” on February 04, 2025.
2. 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.
3. 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,
2025.
Page 1 of 24. 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
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