The Securities and Exchange Board of India (SEBI) has extended the timeline for the full rollout of the retail algorithmic trading framework, now setting April 1, 2026, as the new deadline. This decision, announced on Tuesday, aims to facilitate a phased implementation that ensures a smooth transition to the new trading system.
SEBI stated that stock brokers ready with the necessary systems can launch the new framework starting October 1, 2025. Algorithmic trading (algo trading) is designed to enhance order execution speeds and improve market liquidity.
The original implementation date was scheduled for August 1 but was postponed to October 1 due to requests from stock brokers and algorithm vendors. In response, SEBI has established a gradual rollout plan that allows brokers additional time and sets specific milestones to achieve prior to full implementation.
According to the revised plan, brokers must register at least one retail algorithmic product and one strategy with the stock exchanges by October 31, 2025. Additionally, they are required to complete the registration of retail algo products and certain strategies through APIs—both developed in-house and from external vendors—by November 30, 2025.
Moreover, brokers must participate in at least one full-functionality mock trading session by January 3, 2026, and provide proof of participation to the exchanges. If brokers do not meet these milestones, they will be prohibited from onboarding new retail clients under the API-based algo trading framework starting January 5, 2026.
Stock exchanges have been directed to monitor compliance with these deadlines and ensure updates from brokers unable to go live by October 1 regarding their existing clients as of September 30, 2025.
The complete algorithmic trading framework, including the operational modalities issued by the exchanges, will be mandatory for all brokers beginning April 1, 2026, as confirmed by SEBI.
