Sebi modifies Order-to-Trade Ratio framework for algorithmic trading. Key changes explained

Sebi is refining its Order-to-Trade Ratio framework for algorithmic orders, effective April 6, 2026. New exemptions for equity options and specific price bands aim to balance market liquidity with preventing excessive order placement. These changes follow stakeholder input and acknowledge the role of market makers. Separately, Sebi proposed overhauling its ‘fit and proper person’ rules for intermediaries.