Extension of timeline for implementation of SEBI Circular dated February 04, 2025on ‘Safer participation of retail investors in Algorithmic trading’

SEBI, vide its circular dated September 30, 2025, has extended timelines for the implementation of its earlier circular (February 4, 2025) on “Safer participation of retail investors in Algorithmic Trading”. While stock brokers ready with required systems can go live from October 1, 2025, others have been given a glide path with milestones – (i) registration of at least one retail algo product and strategy with the exchange by October 31, 2025, (ii) completion of registration of retail algo products and some strategies by November 30, 2025, and (iii) mandatory participation in at least one mock session by January 3, 2026. Stock brokers failing to meet these milestones will be barred from onboarding new retail clients for API-based algo trading from January 5, 2026. The full algo framework, along with operational modalities, will apply to all brokers from April 1, 2026, with stock exchanges responsible for monitoring compliance and ensuring necessary rule amendments.