Sebi Proposes to Add Algo Trade to Broker Regulations

Simplifying the System

- NESIL STANEY

The Securities and Exchange Board of India (Sebi) on Wednesday proposed to include algorithmic trading and proprietary trading in its master regulations.

The regulator floated a consultation paper to revamp regulations of stock brokers (SBs). These aim to ease the compliance burden, harmonize with the Companies Act and add definitions and market practices in line with technological advancements.

"There have been several significant changes in the regulatory landscape with regard to compliance requirements for stock brokers and several amendments have been made to SB regulations. A need was thus felt to review and realign SB regulations with these developments..." Sebi said.