InvestorQ : What are the algorithmic trading restrictions that SEBI has imposed on stock brokers?
indhumathi Sayani made post

What are the algorithmic trading restrictions that SEBI has imposed on stock brokers?

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4 weeks ago
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Stock brokers providing algorithmic trading facilities by unregulated platforms have been warned by SEBI to remove any reference to past or future performance of such algorithms. The idea is to prevent mis-selling to investors and protect their interests. Some of them also rate strategies, which looks like an assured return scheme, and that is misleading.

The regulator warned brokers offering algorithmic trading not to make any direct or indirect reference to past or expected returns. Brokers must also explicitly mention that these algos are to be executed at the sole risk of investors.

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