The Securities and Exchange Board of India, by announcing the move, aims to cater to increased demand from retail investors for algorithm trading. The agency had earlier raised concerns over emergence

As the regulator tightens rules, experts say it will increase compliance burden and operational costs for algo traders

Brokers can provide algo trading facility to retail investors only after obtaining requisite permission from stock exchanges for each algorithm, SEBI said in a circular

Under the new guidelines, Sebi facilitated the participation of retail investors in algorithmic trading (algo trading). At present, only institutional investors are allowed to put in algo trading, which provides significant advantages of timed and programmed order execution.

Sebi introduces regulations allowing retail investors to participate in algo trading with safeguards. The move aims to improve liquidity and offer faster order execution.

Algo trading is already prevalent in India among both institutional as well as retail investors. However, existing regulations had several loopholes