Masterclass
Masterclass: Understanding Regulatory Considerations for Algorithmic Trading in India
A regulator's-eye map of algorithmic trading in India for senior quants, aspiring systematic fund managers and prop desk leads. Covers the legal stack (SEBI Act, SCRA, Stock Broker Regulations, PFUTP, exchange bye-laws), exchange-level algo approvals and pre-trade risk checks, order-to-trade ratio and order-per-second discipline, kill switches, the co-location and market data framework and the NSE co-location matter, SEBI's February 2025 retail algo framework (broker as principal, API rules, white-box and black-box algos, algo registration), market abuse doctrine for algorithmic conduct, and how to structure and run a systematic business in India: prop membership, PMS, AIF Category III, GIFT IFSC, cybersecurity and system audit obligations, tax treatment and a working compliance programme.
SEBI Algo RegulationExchange Risk ControlsCo-locationRetail Algo Framework 2025PFUTP and Market AbuseFund StructuringCompliance Programme
MODULES
6
DURATION
~4.5 hrs
TRACK
Algorithmic Trading
What You'll Master
Map every rule that touches an algorithmic order on NSE or BSE to the statute, regulation, circular or bye-law it comes from
Design pre-trade risk checks, OTR and OPS controls and kill-switch procedures that satisfy exchange requirements
Explain the co-location and market data framework and the lessons of the NSE co-location matter
Apply SEBI's February 2025 retail algo framework to brokers, API users and algo providers
Recognise spoofing, layering, self-trades and other conduct SEBI treats as manipulation under PFUTP
Choose the right vehicle for systematic capital in India: prop, PMS, AIF Category III or GIFT IFSC
Build a compliance programme covering cybersecurity, system audit, record-keeping, tax and regulatory reporting
Access Level
PRO
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
Chapter 1: The Regulatory Architecture of Algorithmic Trading in India
4 Lessons▶
Who Regulates What: SEBI, the Exchanges, Clearing Corporations and RBI10 min read
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What Counts as an Algorithm: Definitions Across SEBI Circulars and Exchange Bye-laws9 min read
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The Legal Stack: SEBI Act, SCRA, Stock Broker Regulations, PFUTP and Exchange Bye-laws11 min read
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A Timeline of Indian Algo Regulation: DMA in 2008 to the Retail Algo Framework of 202510 min read
Chapter 2: Exchange-Level Controls: Approvals, Risk Checks and Order Discipline
4 Lessons🔒
Algo Approval at the Exchange: Undertakings, Mock Testing and System Audits11 min read
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Mandatory Pre-Trade Risk Checks: Price Bands, Quantity Limits and Order Value Caps11 min read
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Order-to-Trade Ratios, Order Per Second Limits and the Penalty Framework11 min read
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Kill Switches, Dysfunctional Algos and the Duty to Stop9 min read
Chapter 3: Co-location, Market Data and Fair Access
4 Lessons🔒
The Co-location Framework: Rack Space, Latency and Equal Access Rules10 min read
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Tick-by-Tick Data, Market Data Entitlements and Fair Dissemination9 min read
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Case Study: The NSE Co-location Matter and What It Changed12 min read
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Managed Co-location and Cheaper Access Routes for Smaller Firms8 min read
Chapter 4: The 2025 Retail Algo Framework: Brokers, APIs and Algo Providers
5 Lessons🔒
Why SEBI Rewrote Retail Algo Rules: From the 2021 Consultation to the February 2025 Circular10 min read
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Broker as Principal: Responsibilities for Every Algo Order on Its Platform10 min read
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API Access Rules: Static IPs, Authentication and Order Tagging10 min read
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White-Box vs Black-Box Algos and Algo Provider Empanelment11 min read
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Registering a Self-Built Algo: Thresholds, Algo IDs and Family Use9 min read
Chapter 5: Market Abuse and Algorithmic Conduct under PFUTP
4 Lessons🔒
Spoofing, Layering and Quote Stuffing: How SEBI Frames Algorithmic Manipulation11 min read
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Self-Trade Prevention, Wash Trades and Synchronised Trading9 min read
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Insider Trading Rules for Systematic Desks: Walls, Restricted Lists and Data Sourcing10 min read
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Case Studies: SEBI Enforcement Actions Involving Algorithmic Orders12 min read
Chapter 6: Structuring and Running a Systematic Business in India
6 Lessons🔒
Proprietary Trading Firms: Broker Membership, Net Worth and Prop Disclosures10 min read
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Managing Other People's Money: PMS, AIF Category III and the RA/IA Boundary12 min read
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GIFT IFSC and Cross-Border Structures for Quant Funds10 min read
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Cybersecurity, System Audit and Business Continuity Obligations under CSCRF10 min read
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Taxation and Record-Keeping for Algorithmic Trading Income10 min read
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Building the Compliance Programme: Policies, Logs, Surveillance and Regulatory Reporting11 min read