The Securities and Exchange Board of India (Sebi) is considering ways to make algo trading more accessible to retail investors. Algo trading, or algorithmic trading, involves using computer programs to execute trades at high speeds and volumes. Currently, this form of trading is mostly dominated by institutional investors and large financial firms.
Sebi is looking into potential measures to enable retail investors to participate in algo trading, which could level the playing field and provide more opportunities for smaller investors. This move could potentially increase market efficiency and liquidity.
Algo trading has been a controversial topic in the financial world, with concerns about its impact on market stability and fairness. By exploring ways to allow retail investors to engage in algo trading, Sebi is aiming to address these concerns while also promoting a more inclusive and diverse trading environment.
Overall, Sebi’s efforts to facilitate the participation of retail investors in algo trading could have significant implications for the Indian financial markets. It will be interesting to see how these potential measures unfold and the impact they may have on the trading landscape.