REGULATORY · COMPETITIVE · INDIA
SEBI settles enforcement proceedings against 111 brokers
Change
SEBI settled and closed enforcement proceedings against 111 stockbrokers under the Settlement Scheme on Association with Certain Algo Platforms, 2025, with each broker paying ₹1 lakh.
Why it matters
SEBI closed adjudication proceedings for 111 brokers through the 2025 Settlement Scheme, which allowed eligible brokers to settle pending proceedings by paying a fine without admitting or denying guilt. The scheme’s window opened June 16, 2025 and was extended to October 16, 2025. Each participating broker paid ₹1 lakh, producing total collections of ₹1.11 crore. The settled group spans major, mid-sized, and regional brokerages; SEBI’s probe had identified API integrations with 122 registered brokers. SEBI retained the right to revoke settlements if misrepresentation or breaches of settlement conditions are later established.
Implications
- · Adjudication proceedings for the specified algo-trading violations are closed for the 111 brokers.
- · Participating brokers paid fines totaling ₹1.11 crore and maintain a no-admission-of-guilt settlement status.
- · Settlements can be revoked and proceedings reopened for any broker if misrepresentation or settlement-condition breaches are later found.
- · Closure of these cases reduces the enforcement backlog related to the identified algo-platform matters.
Who is affected
- · Registered stockbrokers with API integrations
- · Brokerage compliance and legal teams
- · Algo-trading platform operators
- · SEBI enforcement and adjudication units
Source
Topics
Law & Public Safety Regulatory Actions Compliance Finance & Banking Financial Services