111 Brokers Pay ₹1 Lakh Each To Settle SEBI Algo Platform Case
Moneylife Digital Team 18 March 2026
As many as 111 brokers have settled enforcement proceedings initiated by market regulator Securities and Exchange Board of India (SEBI) over their association with certain algorithmic (algo) trading platforms that allegedly offered assured or guaranteed returns to investors. Each of these brokers has paid a settlement amount of ₹1 lakh under SEBI’s ‘Settlement Scheme on Association with Certain Algo Platforms, 2025’.
 
Among those who opted for settlement are several well-known brokerage firms, including: Zerodha Broking Ltd, ICICI Securities Ltd, HDFC Securities Ltd, Kotak Securities Ltd, Angel One Ltd, Upstox Securities Pvt Ltd, Paytm Money Ltd, and Motilal Oswal Financial Services Ltd.
 
The regulatory action follows SEBI examination which found that the application programming interfaces (APIs) of 122 stock brokers were integrated with third-party algo platforms displaying strategies promising consistent profits or guaranteed returns—practices that violate SEBI’s September 2022 circular and the code of conduct under stock broker regulations. 
 
To address the large number of similar cases and reduce regulatory burden, SEBI introduced the settlement scheme in June 2025. The scheme provided brokers with an opportunity to resolve pending adjudication proceedings by paying a specified amount, without admitting or denying guilt. 
 
Initially open from 16 June 2025 to 16 September 2025, the scheme was later extended to 16 October 2025 following requests from market participants. A total of 111 brokers availed the scheme and remitted the settlement amount within the stipulated period. 
 
With this order, SEBI has closed the pending proceedings against these applicants and confirmed that no further action will be initiated for the same violations. 
 
However, the regulator has reserved the right to reopen the matter in case of any misrepresentation, breach of settlement terms, or discrepancies in payment.
 
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