**Policy Summary: Extension of Timeline for Implementation of SEBI Circular on Algorithmic Trading**
This circular, reference number SEBI/HO/MIRSD/MIRSD-PoD-PCIR/2025/108, issued by the Securities and Exchange Board of India (SEBI) on July 29, 2025, announces an extension to the implementation timeline for the SEBI circular SEBI/HO/MIRSD/MIRSD-PoD-PCIR/2025/0000013, dated February 04, 2025, concerning safer participation of retail investors in algorithmic trading.
Originally slated to take effect on August 01, 2025, the implementation date is now extended to October 01, 2025. This extension is in response to representations from stock brokers and ISF participants requesting additional time to ensure smooth implementation and avoid market disruption.
The circular directs all recognized Stock Exchanges to:
* Inform their members and participants about the provisions of this circular and disseminate the information on their websites.
* Establish appropriate systems and procedures to ensure compliance.
* Amend relevant Byelaws, Rules, and Regulations to reflect the revised implementation date.
This circular is issued under the authority of 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. Its purpose is to protect investor interests, promote market development, and regulate the securities markets.
The circular is available on the SEBI website (www.sebi.gov.in) under 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
SEBI: Securities and Exchange Board of India, the regulatory body issuing the circular.
Stock Exchanges: Recognized stock exchanges to whom the circular is addressed.
Stock Brokers: Entities regulated by SEBI and members of the Stock Exchanges.
SEBI Circular SEBIHOMIRSDMIRSDPoDPCIR20250000013: The original circular regarding safer participation of retail investors in Algorithmic trading.
Algorithmic trading: The subject of the original circular, pertaining to automated trading strategies.
ISF participants: Stakeholders requesting an extension to the timeline for implementing the circular's provisions.
Securities and Exchange Board of India Act, 1992: The act under which the circular is issued, specifically Section 111 of Chapter IV.
Securities and Exchange Board of India Stock Brokers Regulations, 1992: Regulations referred to in the circular's justification, specifically Section 30.
CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/108 July 29, 2025
To,
All recognized Stock Exchanges
Stock Brokers through recognized Stock Exchanges
Madam / Sir,
Sub: Extension of timeline for implementation of SEBI Circular
SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/0000013 dated February 04, 2025
1. SEBI issued circular on “Safer participation of retail investors in Algorithmic trading”
on February 04, 2025. The provisions of the circular were to come in to effect from
August 01, 2025.
2. SEBI has received various representations from stock brokers and ISF participants
requesting for an extension of timeline for implementation of provisions of the
circular. Based on the same, it has been decided that the circular shall come into
effect from October 01, 2025, in order to ensure smooth implementation without
any disruption to the markets players and investors.
3. Stock Exchanges, are hereby, directed to:
3.1. bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites;
3.2. put in place appropriate systems and procedures to ensure compliance of the
provisions of this circular;
3.3. make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above decision;
4. 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
Page 1 of 2Section 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 markets.
5. 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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