3 months, 3 weeks ago

Sebi's nod to retail algo trading levels the playing field with institutions

The Securities and Exchange Board of India has introduced a landmark proposal to bring retail investors into the realm of algorithmic trading—a domain traditionally dominated by institutional players. With advantages such as faster trade execution, enhanced risk management, and cost efficiency, algo trading has the potential to transform retail participation in India’s capital markets. Levelling the playing field The framework represents a major step in democratizing India’s capital markets by equipping retail investors with tools previously exclusive to institutions. By bridging the gap in time-to-action, Sebi’s framework empowers retail investors to respond to market dynamics with precision, creating a more level playing field in an increasingly competitive environment. Conclusion Sebi’s initiative to extend algo trading to retail investors marks a transformative moment in India’s financial markets.

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