SEBI issued guidelines for stock brokers providing algorithmic trading services

Circular No. SEBI/HO/MIRSD/DOP/P/CIR/2022/117, dated: 02.09.2022

The SEBI issued strict guidelines for stock brokers providing algorithmic trading services whereby it has decided that Stock Brokers who provide algorithmic trading services shall not directly or indirectly make any reference to the past or expected future return/performance of the algorithm and/or directly or indirectly associate with any platform providing any reference to the past or expected future return/performance of an algorithm.

Further, Stock brokers who are directly/indirectly referring to any past or expected future return/performance of an algorithm or are associated with any platform providing such reference, shall remove the same from their website and/or disassociate themselves from the platforms providing such references, as the case may be, within a period of 7 days from the date of this circular.

The provisions of this circular shall be applicable with immediate effect.

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