SEBI Introduces Three-Month Settlement Scheme for Brokers in Algo Trading Cases
| Aspect | Details |
|---|---|
| Event | SEBI Settlement Scheme for Brokers |
| Announcement Date | June 10, 2025 |
| Scheme Duration | June 16, 2025 - September 16, 2025 |
| Eligibility | Brokers with pending proceedings for associating with unregulated algo platforms |
| Settlement Amount | Approximately ₹1 lakh per broker |
| Key Platforms Involved | TradeTron and other unregulated algo platforms |
| Brokers Noticed | Over 100 brokers, including Zerodha, 5Paisa, Motilal Oswal |
| Regulatory Action | SEBI issued show-cause notices for violations of market conduct norms |
| New Regulations | Stricter rules for algo trading, including empanelment of providers and accountability for brokers |
| Objective | Investor Protection, Market Integrity, and Compliance Opportunity |