Has SEBI Extended the Settlement Scheme Deadline for Algo Trading Brokers?
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Synopsis
In a significant move, SEBI has extended the deadline for the settlement scheme concerning unregulated algo trading platforms. Brokers now have until October 16, 2025, to resolve their outstanding cases, amid increasing interest. This extension aims to provide much-needed relief and clarity for brokers navigating through complex legalities.
Key Takeaways
- Deadline Extended: SEBI has extended the settlement scheme deadline to October 16, 2025.
- Opportunity for Brokers: Brokers can settle cases linked to unregulated algo trading platforms.
- Legal Obligations: Non-participation may lead to continued legal actions against brokers.
- Regulatory Changes: SEBI has relaxed MPS norms for large companies planning IPOs.
- Market Stability: SEBI aims to enhance market stability through these measures.
New Delhi, Sep 16 (NationPress) The Markets Regulator SEBI announced on Tuesday that it has provided stock brokers additional time to resolve cases associated with unregulated algo trading platforms.
The deadline for its special settlement scheme has been extended to October 16.
Initially launched in June this year, the scheme was originally scheduled to conclude on September 16.
SEBI noted, "Given the recent surge in interest from various entities in participating in the scheme, the competent authority has decided to extend the deadline until October 16, 2025."
This initiative offers brokers linked to specific unregulated algo platforms an opportunity to settle their outstanding cases with SEBI.
These cases are currently under review by various authorities, including the Adjudicating Officer, the Securities Appellate Tribunal, and even the courts.
SEBI highlighted that numerous brokers have expressed interest in the scheme lately, leading to the decision to prolong the window by another month.
Participating in this scheme allows brokers to expedite the resolution of their cases.
However, SEBI cautioned that brokers who do not capitalize on this opportunity will still face legal repercussions.
In addition to this, SEBI introduced several regulatory changes following its board meeting last week, including significant relaxations in Minimum Public Shareholding (MPS) norms for large firms intending to launch Initial Public Offerings (IPOs).
As per SEBI's announcement on September 12, companies valued between Rs 50,000 crore and Rs 1 lakh crore will now have extended timelines to fulfill their public shareholding obligations.
They must achieve 15 percent MPS within five years post-listing and 25 percent within a decade.
Point of View
SEBI's extension of the settlement scheme reflects a responsive and adaptive regulatory approach. This decision provides a timely opportunity for brokers to resolve their pending issues, ultimately promoting market stability. The move indicates SEBI's commitment to facilitating a fair trading environment while ensuring compliance with regulations.
NationPress
20/09/2025
Frequently Asked Questions
What is the new deadline for SEBI's settlement scheme?
The new deadline for SEBI's settlement scheme has been extended to October 16, 2025.
What does the settlement scheme offer brokers?
The settlement scheme allows brokers associated with unregulated algo platforms to settle their outstanding cases with SEBI.
What happens if brokers do not participate in the scheme?
Brokers who choose not to participate in the scheme will continue to face legal actions under the law.
When was the settlement scheme initially launched?
The settlement scheme was launched in June of this year.
What changes did SEBI announce regarding public shareholding norms?
SEBI announced relaxations in Minimum Public Shareholding norms, allowing companies with a market cap of Rs 50,000 crore to Rs 1 lakh crore more time to meet requirements.
