Why Sebi’s algo trading proposals worry brokers and fintechs
3 years ago

Why Sebi’s algo trading proposals worry brokers and fintechs

Live Mint  

The Securities and Exchange Board of India has issued a discussion paper on regulating algorithmic trading, or trades generated out of automatic execution and logic. A working group constituted by Sebi lays the responsibility with the brokers as intermediaries and the exchange as the first-line regulator when retail investors subscribe to algo services. Many experts say the paper reinforces the market regulator’s belief that retail investors must be kept away from the little-known risks of algos for their own good. However, Sebi could bring in steps to ensure that brokers do not mis-sell or falsely advertise algo trading that guarantees returns to retail investors. Having said that, the simplest way in which Sebi and exchanges can safeguard retail investors’ interest is through education.

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

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

Live Mint  

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 …

SEBI proposes retail investors participate in algo trading
1 week, 3 days ago

SEBI proposes retail investors participate in algo trading

The Hindu  

Securities and Exchange Board of India on Friday proposed a framework to allow retail investors to participate in algorithmic trading through stock brokers. A study published by the regulator in September showed that during fiscal year 2024, algorithmic trading accounted for 97% of foreign investors’ and 96% of proprietary traders’ profits in futures and options. SEBI said that there has …

Algo trading coming soon to a terminal near you
1 week, 3 days ago

Algo trading coming soon to a terminal near you

Live Mint  

Algorithmic trading which has remained the preserve of large institutions could soon be open to India's retail investors as well, with the market regulator proposing a framework with critical roles for brokers and stock exchanges. In a consultation paper floated on Friday, the Securities and Exchange Board of India suggested making algo trading available to retail investors through licensed brokers, …

SEBI proposes registration, empanelment for algorithmic traders and providers
Trending News
1 week, 4 days ago

SEBI proposes registration, empanelment for algorithmic traders and providers

New Indian Express  

The market regulator Securities and Exchange Board of India has proposed empanelment and registration of algorithmic providers and traders with the exchanges and also has asked tech-savvy retail investors to register the algorithms they have developed with the exchanges through their brokers. Algorithmic trading, also known as algo trading, is a method of using computer programs to automatically execute trades …

SEBI Warns Against Trading Unlisted Securities on Unauthorized Platforms
1 week, 6 days ago

SEBI Warns Against Trading Unlisted Securities on Unauthorized Platforms

Deccan Chronicle  

The Securities and Exchange Board of India has issued a cautionary advisory to investors, warning against trading in securities of unlisted public limited companies on unauthorized electronic platforms.In a statement, SEBI highlighted that certain electronic platforms and websites have been facilitating such transactions, which violates the Securities Contract Act, 1956, and the SEBI Act, 1992. These laws are intended to …

SEBI warns investors against unauthorised virtual trading, gaming platforms offering stock price-based advice
1 month, 2 weeks ago

SEBI warns investors against unauthorised virtual trading, gaming platforms offering stock price-based advice

Live Mint  

The Securities and Exchange Board of India on Monday cautioned investors about unauthorised virtual trading and gaming platforms that provide trading advice based on stock prices. “By mimicking securities market activities and promising financial returns, many of these platforms can create an unauthorised trading experience that often leads to investor exploitation,” said Sumit Agrawal, founder of Regstreet Law and former …

Sebi regulates finfluencers, bans registered entities from associating with them
5 months, 3 weeks ago

Sebi regulates finfluencers, bans registered entities from associating with them

Hindustan Times  

Capital markets watchdog Sebi on Thursday decided to regulate financial influencers or finfluencers amid growing concerns about potential risk associated with such persons. In order to address the concerns related to certain persons including unregulated entities inducing investors to deal in securities based on inappropriate claims, Sebi board approved norms to restrict associations between its regulated entities and unregistered individuals. …

Rise of ‘finfluencers’ sparks debate over influence and accountability
1 year, 3 months ago

Rise of ‘finfluencers’ sparks debate over influence and accountability

The Hindu  

As SEBI takes steps to regulate digital financial gurus, questions arise about the thin line between insightful guidance and potential manipulation. In a decisive move aimed at addressing the growing concerns over the links between financial entities and social media influencers, the Securities and Exchange Board of India, in a consultation paper issued on August 25, proposed a list of …

Why is SEBI tightening norms for ‘FinFluencers’? | Explained
1 year, 3 months ago

Why is SEBI tightening norms for ‘FinFluencers’? | Explained

The Hindu  

The story so far: On August 25, markets regulator Securities and Exchange Board of India floated a consultation paper proposing regulations to restrict the association of SEBI-registered intermediaries or regulated entities with unregistered ‘finfluencers.’ Other than undertaking enforcement action against the unregistered ‘finfluencers,’ the paper proposed measures to “disrupt the revenue model for such finfluencers, so that the perverse incentives …

SEBI's New Norms to Prevent Brokers From Retaining Investors' Money at End of Trading Day
1 year, 10 months ago

SEBI's New Norms to Prevent Brokers From Retaining Investors' Money at End of Trading Day

News 18  

The Securities and Exchange Board of India, the regulatory body that monitors the activities of the stock market, has taken a big step to eliminate the possibility of misuse of investors’ money by financial brokers. SEBI has proposed to prohibit trading members and ‘clearing’ members from holding investor money till the end of the day and return the entire amount …

Sebi’s plan to separate brokers from your money
2 years ago

Sebi’s plan to separate brokers from your money

Live Mint  

In the third week of October, brokers from across India had gathered at the Taj Lands End hotel in Mumbai for their first mega physical gathering since the onset of the pandemic. If Sebi’s plans go ahead, brokers will only execute buy or sell trades and no money from an investor’s bank account will go into a broker’s account. How …

The invisible hand in India’s stock market
3 years, 9 months ago

The invisible hand in India’s stock market

Live Mint  

Not many people would have heard about these firms. While these are basic examples of what an algo can do, market participants say that more complex and sophisticated algos are now being used by the deep-pocketed global and even domestic institutional investors and brokerages. That is a pretty large share considering the fact that algo trading was allowed in India …

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