SEBI Extends Settlement Scheme for Algo-Linked Brokers to October 16

The Securities and Exchange Board of India (SEBI) has extended the deadline for its settlement scheme dealing with brokers tied to certain unregistered algorithmic trading platforms. The scheme, which began in June, was due to close on September 16, 2025. As per the news reports, it will now remain open until October 16, 2025.

Reason for Extension

According to SEBI, this follows growing interest among market participants. The regulator noted in its public notice that many entities had shown willingness to use the scheme, prompting the one-month extension.

About the Scheme

The settlement scheme was first announced on June 9, 2025, under Section 15JB of the SEBI Act, 1992 and Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018. It was created to resolve proceedings already underway before Adjudicating Officers, the Securities Appellate Tribunal (SAT), or various courts.

Coverage of Brokers

More than 110 brokers had been issued show-cause notices after SEBI investigations revealed associations with unregistered algo platforms. These platforms were offering trading strategies, some marketed with claims of guaranteed returns, which raised concerns about investor protection.

Path to Settlement

By applying under the scheme, brokers can bring pending matters to a quicker conclusion instead of continuing through lengthy legal processes. SEBI has also clarified that proceedings will continue against those who choose not to participate.

The scheme was originally valid from June 16, 202,5 to September 16, 2025. With the latest extension, applications will now be accepted until October 16, 2025.

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Conclusion

The extension gives brokers more time to use the settlement window. It also continues SEBI’s effort to resolve long-standing cases linked to unauthorised algo trading platforms through a structured process.

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