Decision Support Tools / Algorithms trading

Automated Trading” shall mean and include any software or facility by the use of which, upon the fulfillment of certain specified parameters, without the necessity of manual entry of orders, buy/sell orders are automatically generated and pushed into the trading system of the Exchange for the purpose of matching. SEBI has allowed Exchanges to extend Algorithmic trading facility to members involving usage of various Decision Support Tools / algorithms / strategies

SEBI, vide circular no. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/0000013 dated February 4, 2025 issued a circular ‘Safer participation of retail Investors in Algorithmic trading. Exchange vide circular NSE/INVG/67858 dated May 05, 2025 has issued “Implementation Standards for safer participation of retail investors in Algorithmic trading”.

Trading Members who wish to extend the Algo facility to Retail Investors under the category “Client Direct API” are required to provide the application documents as per Exchange circular nos. NSE/INVG/69255 dated July 22, 2025 and NSE/INVG/70309 dated September 19, 2025.

Procedure to apply for Decision Support Tools / Algorithms trading (Algo)

To facilitate efficient & easy registration process Algorithms are categorised into ‘Approved algorithms’ through CTCL/DMA (which is supplied by vendors) & ‘Non-approved algorithms’ through CTCL/DMA