SEBI's proposed algo trading guidelines for retail investors
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@admin SEBI has proposed to implement a new set of guidelines for retail investors/traders.
In the guidelines they mention many rules regulating use of API, but those are good when a client subscribes to Third party market place as they are offering for a fees and those need to be regulated. But in many other traders like me we have developed our own strategies and run them in our laptops and for our own use. It would be unfair on us if SEBI asks all retail traders to get their algo's approved by them. Say a 10lot market order in an index option is in no way a systemic risk. If they insist to get approval even for algos developed and used by individual retail traders it would be like asking a trader to get a Research Analyst/Investment Advisor certification before trading in equity.
Request to kindly note these concerns and put forward the same at appropriate forum these retail traders concerns via ANMI or any Brokers panel.
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Like all securities, mutual funds are subject to market, or systematic, risk. This is because there is no way to predict what will happen in the future or whether a given asset will increase or decrease in value. Because the market cannot be accurately predicted or completely controlled, no investment is risk-free.
so why need approval?
simple arguement ask to SEBI -
Thank you @harish for sharing your feedback with us.
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@admin I have voiced my concern to the mail id provided by SEBI in the link but if you to raise it in a larger forum it will help the investing community at large.