SEBI Algo Trading Rules Now Live: 2FA and Audit Trails Mandatory from April 2026
India's markets regulator SEBI brought new algorithmic trading rules into effect on April 1, 2026, requiring brokers to enforce two-factor authentication for all algo orders and maintain detailed audit trails of every automated trading decision. The regulations draw a clear line between retail traders who build their own strategies and brokers who are responsible for the execution infrastructure. Audit trail requirements mean every algo order must be logged with its inputs, timestamp, and outcome, enabling post-trade reconstruction of any errant strategy. The rules are part of SEBI's broader FY26 agenda aimed at making the costs and risks of uninformed or uncontrolled trading more transparent and traceable. Retail algo traders are advised to confirm their broker supports the new authentication flow and to maintain independent logs alongside those kept by their broker.
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