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Request for Inputs: SEBI Consultation Paper on Algorithmic Trading by Retail Investors

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Securities and Exchange Board of India (SEBI) has recently released a consultation paper to solicit comments from public on algorithmic trading being done by retail investors including use of API access and automation of trades using the same.

Generally, the features of algorithmic trading (Algo trading) include using a defined set of instructions in the form of algos to generate trading signals and placing orders. The algo trading system automatically monitors the live stock prices and initiates an order when the given criteria are met. This frees the trader from having to monitor live stock prices and initiate manual order placement.

In this regard, SEBI constituted an internal working group which deliberated on the issue of unregulated algos being used by investors especially retail investors and ways to prevent the same.

The consultation paper provides the proposed framework for algo trading done by retail investors.

In this regard, we request you to send your inputs/ views on the proposed framework with and before January 7, 2022 in the following format:


Reference Para of the Consultation Paper

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