SEBI Regulations on Automated and Copy Trading Platforms

Hi @nithin ,
I came across your article on Zerodha’s website titled “Stock Trading Games & Copy Trading Platforms in India” (Stock trading games & copy trading platforms in India? – Z-Connect by Zerodha), where you mentioned that “SEBI has also banned automated trading for retail, which means that the platform can’t allow a follower to automatically execute trades every time the influencer trades — which is the main attraction of the copy trading platforms, hence ‘copy’ trading.”
Could you please share all the necessary resources where SEBI stated this?
Additionally, you mentioned that “The reason such a platform can’t be built in India is again because of regulations.”
Could you please refer me to the specific rules and regulations that would be violated by building these types of platforms?

Hi @Ritesh_Mandal

Let me do some research and get back to you.

Sure , I’ll be waiting

Any updates?

I think this is related to SEBI ban on sharing live or real time stock price update/feed to gaming “APPs” to stop Stock market " Gamification"

Hi @gaganraam @Ritesh_Mandal

You can refer to the following circulars from the regulator and exchanges regarding this topic

21st Apr 2023: NSE published a circular prohibiting the use of stock market data from the exchanges in gaming and virtual trading applications.

24th May 2024: As per SEBI’s circular, stock exchanges and related entities (MIIs) must not share live price data with third parties or platforms unless necessary for market functioning or regulatory compliance.

Thank you for sharing references of “Algo trading” stuff, could you please share the references and official resources where SEBI has stated the restrictions or bans related to “copy trading” platforms.