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14-12-2024 10:24 AM | Source: SMC Global Securities Ltd 
Comment on SEBI discussion paper on Algo trading for retail by Ajay Garg - Director & CEO, SMC Global Securities Ltd

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Below the Comment on SEBI discussion paper on Algo trading for retail by Ajay Garg - Director & CEO, SMC Global Securities Ltd 

 

SEBI’s recent move to allow algorithmic trading for retail investors is indeed the need of the hour. Under the new framework, retail investors will get access to the approved algos only from the registered brokers which will safeguard the interests of these investors. This presents great opportunities for stockbrokers to expand their customer base in a regulated environment.

The past study of SEBI on F&O trading revealed that around 97% of FPI profits and 96% of proprietary trader profits were generated from algo trading in FY24. The proposed refined framework of algo trading will build the trust of retail investors and help them generate higher profits, given that it benefited the FPIs and institutional investors in the past.
 
 

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