111 Brokers Settle Algo Trading Case for ₹1 Lakh Each
In a major regulatory cleanup, 111 stock brokers have settled pending enforcement cases with SEBI concerning their association with certain algorithmic trading platforms.
NEW DELHI — In a major regulatory cleanup, 111 stock brokers have settled pending enforcement cases with SEBI concerning their association with certain algorithmic trading platforms. According to the order passed on March 18, 2026, each entity paid a settlement fee of ₹1 lakh to resolve allegations of regulatory violations.
The Crackdown on "Assured Returns"
The case originated from a SEBI investigation into platforms offering algorithmic strategies that promised guaranteed profits.
- The Violation: SEBI found that 122 brokers had their Application Programming Interfaces (APIs) integrated with platforms displaying these misleading "assured return" claims, violating the Stock Brokers Regulations, 1992.
- The Settlement Scheme: To reduce the regulatory burden of 122 individual adjudications, SEBI launched a time-bound scheme (June–October 2025) allowing brokers to settle the matter and move past the allegations.
Major Firms Involved
Out of the 122 identified, 111 entities opted for the settlement. Notable names include:
- Top Discount & Full-Service Brokers: Upstox, Angel One, 5Paisa, and Paytm Money.
- Institutional Giants: ICICI Securities, HDFC Securities, Motilal Oswal, and JM Financial.
- Other Key Players: Nuvama Wealth, Geojit, Anand Rathi, and Nirmal Bang.
By remitting the settlement amount, all pending enforcement proceedings against these 111 firms before the Adjudicating Officer, the Securities Appellate Tribunal (SAT), or various courts now stand resolved.