SEBI Extends Timeline Of Algo Trading Rollout For Retail Investors To April 2026

The Securities and Exchange Board of India has extended the timeline for rolling out its framework aimed at ensuring safer participation of retail investors in algorithmic trading, giving stock brokers an additional time to align their systems. The framework, initially set to take effect from Aug. 1, was first pushed to Oct. 1.

However, SEBI noted that many brokers still need additional time to update their systems in line with recent clarifications and modifications issued by exchanges. As per the revised schedule, brokers ready with the necessary systems may go live from Oct. 1.

Those not prepared will follow a phased approach. By Oct. 31, brokers must submit at least one retail algo product via API and file for registration of at least one strategy with exchanges. By Nov. 30, they must complete registration of multiple retail algo products and strategies.

By Jan. 3, 2026, brokers are required to participate in at least one mock session with the fully compliant functionality. SEBI has warned that brokers missing these milestones will not be allowed to onboard new retail clients for API-based algo trading from Jan. 5, 2026. Exchanges will be responsible for monitoring broker compliance.

Further, brokers not going live from Oct. 1 must disclose their existing client numbers as of Sept. 30, 2025, in exchange-prescribed formats. The regulator clarified that the complete framework covering implementation standards and operational modalities will be applicable to all brokers starting April 1, 2026.