The Securities and Exchange Board of India (Sebi) has introduced a landmark proposal to bring retail investors into the realm of algorithmic (algo) trading—a domain traditionally dominated by institutional players. With advantages such as faster trade execution, enhanced risk management, and cost efficiency, algo trading has the potential to transform retail participation in India's capital markets. Open for public feedback until 3 January 2025, the proposal emphasizes inclusivity while reinforcing market integrity through stringent safeguards.
Decoding the proposal: Sebi's draft framework outlines measures to make algo trading accessible and accountable. Retail investors can participate through brokers, who must obtain exchange approvals for each algorithm before deployment. Each algorithm will have a unique identifier for monitoring and auditing. Brokers must implement robust APIs with two-factor authentication to ensure security and prevent unauthorized access. Tech-savvy retail investors can register self-developed algorithms via brokers for personal or family trading. Sebi classifies algorithms as "white box" (transparent logic) and "black box" (undisclosed logic), with stricter norms for the latter, including mandatory registration of algo providers as research analysts and detailed strategy reporting.
Bu hikaye Mint Mumbai dergisinin December 17, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Mint Mumbai dergisinin December 17, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Trump's trade policies: High on disruption and low on benefits
Tariffs could push up the dollar while an attempt to reduce the US trade deficit could squeeze the liquidity needed by others
Give anonymized medical data an extra privacy shield
Anonymizing health records will help but for the best use to be made of data bases, we need to go further
The worldwide chip sector is still woefully short of women
Diversity drives innovation and reduces the risks of groupthink
China mustn't starve its economy of information
China's economic slowdown seems to have caused anxiety in Beijing over popular unrest, but attempts to keep bad news away from people could prove self-defeating for the regime
Is Google's Willow a 'wow' moment for quantum tech?
Even if the hype is ignored, it's clear that digital encryption is at risk and perhaps also crypto assets
RBI's new governor has a tricky old trilemma to confront as well
Policy under Malhotra will also need to consider complexities of capital flows and the rupee's value
INSIDE ELON MUSK'S PRESCHOOL DREAM
The school, Ad Astra seems to have been designed with the children of Elon Musk's employees—if not Musk's own offspring—in mind
Here's how you can sell your house with a pending loan
A guide to handling loan transfers, navigating the paperwork, approvals, costs and timelines
Sebi's MF Lite norms unveiled: What you must know
Securities and Exchange Board of India (Sebi) has notified Mutual Fund (MF) Lite regulations, allowing fund houses focusing only on passively managed schemes to get a licence with less stringent criteria.
ULTIMATE GUIDE TO MAINTAINING GOOD CREDIT PROFILE
Having a mix of credit products can be good for your score but if you don't need one, don't apply
