SEBI Launches Settlement Scheme for Stockbrokers Linked to Algo Platforms
Moneylife Digital Team 10 June 2025
Market regulator Securities and Exchange Board of India (SEBI) has announced a new Settlement Scheme aimed at stockbrokers associated with some algorithmic trading platforms.
 
The scheme, framed under Section 15JB of the SEBI Act, 1992, and Regulation 26 of the SEBI Settlement Proceedings Regulations, 2018, offers brokers an opportunity to settle ongoing proceedings initiated against them. These proceedings are currently pending before various authorities, including adjudicating officers (AO), securities appellate tribunal (SAT) or courts.
 
Under the scheme, stockbrokers linked with the specified algo platforms can seek expeditious closure of their cases by availing the settlement benefits. The move is expected to provide relief to brokers and reduce the regulatory burden on the adjudication process, the market regulator says.
 
The settlement scheme will be open for a limited period, commencing on 16 June 2025 and running until 16 September 2025, or until a revised date approved by the competent authority.
 
However, brokers who choose not to avail of the scheme will continue to face the regulatory proceedings initiated against them, SEBI says.
 
To assist stakeholders, SEBI says frequently asked questions (FAQ) related to the scheme will be made available on its website on 16 June 2025.
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