SEBI Update: Performance/return claimed by unregulated platforms offering algorithmic strategies for trading

SEBI, vide its Circular dated 2 nd September 2022 issued strict guidelines for Stock Brokers providing algorithmic trading services. Whereby it is has decided that Sock Brokers who provide algorithmic trading services shall not:

Directly or indirectly make any reference to the past or expected future return/ performance of the algorithm; and/or Directly or indirectly associate with any platform providing any reference to the past or expected future return/ performance of the algorithm.

Further, Stock Exchange are directed to monitor compliance of the above by taking confirmation from stock brokers along with the proof of the same; and shall submit a compliance report to SEBI in this regard within 60 days from the date of this Circular.

Link: View Circular