SEBI Extends Deadline for Implementation of Algo Trading Safety Measures for Retail Investors

The SEBI has extended the deadline for implementing its new regulatory framework for retail participation in algorithmic (algo) trading to October 1, 2025. This extension, requested by brokers and the Industry Standards Forum, aims to ensure a smooth transition without disrupting the market. The new norms are designed to enhance investor safety and market integrity by requiring measures like unique identifiers for algo orders, two-factor authentication, and "kill switches" to halt malfunctioning algorithms, thereby opening up algo trading to retail investors more securely.