Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) has recently introduced a framework to facilitate the safe participation of retail investors in algorithmic (algo) trading.

• The move aims to democratize access to advanced trading strategies traditionally dominated by institutional investors.
• Algorithmic trading, or algo trading, is computer-assisted buying and selling of stocks. It is also known as automated or programmed trading. Algo trading came to India in 2008.
• SEBI is a statutory body established on April 12, 1992, in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
• The headquarters of SEBI is situated in Mumbai. The regional offices of SEBI are located in Ahmedabad, Kolkata, Chennai, and Delhi.
• The basic functions of SEBI are to protect the interests of investors in securities and to promote and regulate the securities market.