In September 2025, the Securities and Exchange Board of India (SEBI) extended the deadline for the complete roll out of algorithm trading rules for retail investors to April 01, 2026.
- SEBI announced this new timelines through a circular issued in exercise of powers given under Section 11 (1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, read with Regulation 30 of the SEBI (Stock Brokers) Regulations, 1992, to safeguard the interests of investors in securities and to promote the development of, and to regulate the securities market.
Exam Hints:
- What? Extension of deadline for Retail Algo Trading Framework
- Extended by: SEBI
- Extended to: April 01, 2026
- Previous Timeline: October 01, 2025
- Milestones: registration for at least one algo strategy (October 31, 2025); complete registration of API-based algo (November 30, 2025) and to take one mock trading session (January 03, 2026)
About Retail Algo Trading:
Purpose: Retail Algo Trading enables investors to use automated strategies through computer programmes, which will be offered through Application Programming Interfaces (APIs).
Previous Timelines: Initially, the framework was scheduled to come into effect from August 01, 2025, was 1st deferred to October 01, 2025.
Key Changes:
Glide Path: SEBI has introduced a glide path which further outlines 3 key milestones for the smooth and complete implementation of the framework.
Key Milestones: As per Milestone-1, stock brokers are required to apply for registration of at least one retail algo strategy through an API (in-house and through vendors) by October 31, 2025.
- Milestone-2: SEBI has directed that complete registration of retail algo products coming through API (in-house and through vendors) and few algo strategies for retail algo with exchange must be completed by November 30, 2025.
- Milestone-3: Further, stock brokers are required to participate in at least one mock trading session with full functionality by January 03, 2026, and submit proof of participation to the exchanges.
Restrictions: As per SEBI’s circular, stock brokers who fail to comply with these milestones will be barred from onboarding new retail clients for the API-based algo retail trading framework from January 05, 2026.
Implementing Body: Stock Exchanges have been entrusted with the responsibility to monitor the overall compliance of stock brokers with the milestones set by the SEBI.
- Additionally, SEBI has directed the stock exchanges to ensure that brokers, who are not ready to go live from October 01 2025, are advised to submit details of their existing clients as of September 30 2025, to the concerned exchanges.
Full Implementation by April 2026: SEBI has clarified that the complete algo framework, including operational modalities issued by stock exchanges, will be applicable to all brokers from April 01, 2026.
SEBI also Launched MITRA platform
In September 2025, the Securities and Exchange Board of India (SEBI) launched a new digital platform, Mutual Fund Investment Tracing and Retrieval Assistant (MITRA).
- The new platform is designed to help investors in tracking and reclaiming inactive or unclaimed Mutual Fund (MF) folios.
About MITRA Platform:
Background: This new platform was originally introduced by SEBI in February 2025, through a circular issued in exercise of the powers given under Section 11(1) of the SEBI Act 1992, read with provision of Regulation 77of SEBI (Mutual Funds) Regulation, 1996, to protect the interest of the investors in securities and to promote the development of, and to regulate the securities market.
Centralized Platform: MITRA is a centralized platform that assists the investors, nominees, or legal heirs to check if they have any forgotten, lost or unclaimed MF holdings due to outdated Know Your Customer (KYC) details or the demise of the original investor.
Managed by: The platform is jointly managed by two Qualified Registrar and Transfer Agents (QRTAs) namely, Computer Age Management Services Limited (CAMS) and KFin Technologies Limited.
Accessible Channels: Investors can access the platform through the websites of MF central, AMCs, the Association of Mutual Funds in India (AMFI), the two QRTAs, and SEBI.
About Securities and Exchange Board of India (SEBI):
It was originally constituted as a non-statutory body on April 12, 1988 and was later, established as statutory body under SEBI Act, 1992 (15 of 1992) in January 1992.
Chairperson- Tuhin Kanta Pandey
Headquarters- Mumbai, Maharashtra
