According to persons with knowledge of the situation and the notice’s contents, the Securities and Exchange Board of India has sent notices to more than 120 stockbrokers over their affiliation with Tradetron, an algorithmic trading platform. The action is a result of an investigation into these brokers’ possible regulatory violations. Among the brokerages on the list are Bajaj Financial Securities Ltd., 5Paisa Capital Ltd., Motilal Oswal Financial Services Ltd., and Zerodha.
Users of Tradetron can automate their trading techniques. SEBI’s 2022 circular, however, forbids affiliation with any platforms that promise guaranteed profits. There were allegations that certain strategies on the platform claimed guaranteed returns, raising questions about potential violations of SEBI regulations.
