The Securities & Exchange Board of India (SEBI) has extended the deadline to May 1 for implementing rules related to retail investors’ participation in algorithmic trading. The implementation standards for the regulator’s proposed norms were supposed to be finalised by Tuesday by the brokers’ Industry Standards Forum. The actual effect of the circular, which SEBI brought out in February, will be from August 1.
SEBI’s decision came after the stock exchanges had sought to extend the deadline, citing the need for further discussions with brokers. “SEBI has received a representation from the stock exchanges requesting for an extension of the timeline to finalise the implementation standards…”, its latest circular said.
In February, the regulator had come up with a framework allowing the participation of retail investors in algorithmic trading starting August 1 for faster order execution and improved liquidity, and spelled out rights and responsibilities of main stakeholders of the trading ecosystem. The deadline for applicability of these provisions remains the same i.e. August 1.
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The regulator has directed the exchanges to take necessary steps and put in place systems and procedures for implementation of the above, make necessary amendments to relevant by-laws, rules and regulations for the implementation of the above provisions. The exchanges have also been directed to bring the provisions of SEBI’s circular to the notice of their brokers and disseminate the same on their websites.
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