The extension gives brokers more breathing space to upgrade their systems and adhere to transparency norms. This move comes amid growing interest among retail investors to leverage algorithmic strategies. In FY24, SEBI reported that 97% of F&O profits by foreign investors and 96% by proprietary traders were generated via algo trades—highlighting the instrument’s dominance.
Expect this shift to bring both opportunities and challenges: while it democratizes access to high-speed market tools, it also raises questions about risk management for smaller players.