SEBI Algo Trading Scheme: Brokers Settlement
- MUMBAI, India – The Securities and Exchange Board of India (SEBI) on Monday unveiled a settlement scheme targeting stock brokers using specific algorithmic (algo) trading platforms.This initiative seeks...
- The SEBI settlement scheme, authorized under Section 15JB of the SEBI Act, 1992, and Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018, provides an avenue for brokers...
- By participating in this scheme, eligible brokers gain the opportunity for a faster resolution, avoiding potentially lengthy legal battles.
SEBI launched a new settlement scheme for algo trading platforms, designed to quickly resolve pending regulatory issues for stock brokers. News Directory 3 reports that brokers now have a clear path to settle cases efficiently. The scheme, authorized under the SEBI Act, offers an alternative to lengthy legal battles by allowing brokers to resolve matters before Adjudicating Officers, SAT, or courts. This strategic move provides a significant advantage for eligible brokers seeking swift resolution. For those who decline, existing legal actions will proceed as usual. Stay informed: SEBI will release FAQs on June 16, 2025, offering further guidance.Discover what’s next …
SEBI Settlement Scheme Launched for Algo Trading Platforms
Updated June 9, 2025
MUMBAI, India – The Securities and Exchange Board of India (SEBI) on Monday unveiled a settlement scheme targeting stock brokers using specific algorithmic (algo) trading platforms.This initiative seeks to resolve outstanding regulatory issues swiftly.
The SEBI settlement scheme, authorized under Section 15JB of the SEBI Act, 1992, and Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018, provides an avenue for brokers to settle ongoing cases. These cases are currently under consideration by SEBI Adjudicating Officers, the Securities Appellate Tribunal (SAT), or various courts.
By participating in this scheme, eligible brokers gain the opportunity for a faster resolution, avoiding potentially lengthy legal battles. SEBI emphasized that brokers who choose not to participate in the settlement scheme will continue to face legal actions as dictated by existing regulations.
What’s next
SEBI plans to publish a list of frequently asked questions (FAQs) regarding the settlement scheme on its official website on June 16, 2025, offering further clarification and guidance to interested parties.