Sebi Extends Retail Algo Trading Deadline to April 2026

New Delhi, Sep 30 (PTI) Capital markets regulator Sebi on Tuesday granted additional time to stock brokers for the full rollout of the retail algo trading framework by April next year, allowing a phased implementation to ensure a smooth transition to the new system.

According to Sebi, stock brokers who are ready with the required systems can go live with the new framework from October 1 this year.

Algorithmic trading (algo trading) provides the advantages of faster order execution and improved liquidity.

The framework's implementation, originally scheduled to come into effect from August 1, was earlier deferred till October 1.

However, based on fresh representations from stock brokers and algorithm vendors, Sebi has provided a phased glide path for complete implementation, the regulator said in a circular.

Further, brokers, who are yet to carry out the required system changes, have been given additional time with specific milestones to meet before the full implementation takes effect, the markets watchdog said.

As per the revised schedule, brokers are required to register at least one retail algorithmic product and one strategy with stock exchanges by October 31.

The stock brokers must complete registration of retail algo products and a few strategies coming through APIs, both in-house and through vendors, by November 30, as per the circular.

Additionally, brokers must participate in at least one mock trading session with full functionality by January 3, 2026, and submit proof of participation to the exchanges.

Sebi said that stock brokers who failed to meet these milestones will be barred from onboarding new retail clients for the API-based algo trading framework from January 5, 2026.

Stock exchanges have been instructed to monitor compliance with these deadlines and ensure that brokers, who are not ready to go live from October 1, are advised to provide details of their existing clients as of September 30, 2025, to exchanges.

The regulator said the complete algo framework, including operational modalities issued by exchanges, will become applicable to all brokers from April 1, 2026, the Securities and Exchange Board of India (Sebi) said.