SEBI Circular – Algorithmic Trading Compliance
SEBI/HO/MIRSD/DOP/P/CIR/2025/45
NextGen Algo Solutions ensures strict adherence to SEBI regulations. Our algorithmic trading solutions operate transparently, integrating all latest guidelines from the September 2025 SEBI circular to ensure investor protection and maintain market integrity.
Key Updates from SEBI Circular – September 2025
1. SEBI warns against exaggerated return claims by algo trading platforms to protect investors.
2. Brokers/platforms must avoid referencing past or projected returns in websites, apps, or marketing material.
3. Full risk disclosure for automated trading is mandatory for all clients.
4. Investor education & safeguards such as portfolio limits, stop-loss, and consent-based execution are required.
5. Brokers must submit compliance reports within 30 days to demonstrate adherence.
6. NextGen Algo Solutions implements all SEBI compliance measures, including:
- Automated execution with user-defined limits
- Transparent risk disclosure prior to every trade
- No misleading profit statements
- Secure audit logs for all transactions
- Mandatory user consent for algorithm activation
7. Past performance does not guarantee future results; users must understand market risks.
8. SEBI emphasizes investor protection and regulatory compliance in algorithmic trading.
9. NextGen Algo Solutions offers periodic updates, maintenance, and compliance support for all users.
10. For clarifications, clients should contact NextGen Algo Solutions compliance team via official channels.