MCX Circular on -Reminder – Timeline for implementation of “Safer participation of retail investors in Algorithmic trading”
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Issuer: MCX
Highlights of MCX Circular dated November-21-2025
In terms of the provisions of the Rules, Bye-Laws and Business Rules of the Exchange, and in continuation to the SEBI has issued circular no. SEBI/HO/MIRSD/MIRSDPoD/P/CIR/2025/0000013 dated February 4, 2025, MCX circular MCX/CTCL/235/2025 dated May 06, 2025, MCX/CTCL/364/2025 dated July 25, 2025, and Circular no.: MCX/CTCL/504/2025 dated October 01, 2025 regarding Extension of timeline for implementation of SEBI ‘Safer participation of retail investors in Algorithmic trading.
In order to provide more time to stock brokers who are yet to carry out the required system changes, a glide path was provided in the SEBI circular SEBI/HO/MIRSD/MIRSDPoD/P/CIR/2025/132 dated September 30, 2025, which is required to be adhered by stock brokers, with the following milestones:
Milestone 1 -: Registration of retail algo products coming through API (In-house and through vendors) and few algo strategies for retail algo with exchange shall be completed by 30th November 2025.
Milestone 2 -: Stock broker shall participate in at least one mock session with the new functionality which is complete in all aspects by January 03, 2026. The calendar for mock sessions for testing of algos shall be specified by exchanges Stock broker shall provide evidence to the exchanges regarding the participation in mock session. In case, stock broker has not participated by January 03, 2026, the said fact shall be intimated to the exchange
Stock brokers, who fails to adhere to the above milestones, shall be barred from onboarding new retail clients for API based algo trading framework w.e.f. January 05, 2026
Framework specified in SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/0000013 dated February 04, 2025 along with implementation standards and detailed operational modalities (issued by exchanges) will be applicable to all the stock brokers with effect from April 01, 2026.
Trading Members and their respective constituents are requested to take note of the same
In case of any clarification or assistance required in the implementation of this circular, you may contact : Kaushik Jethwa at kau...@secmark.in and 9870210171