Overview

• The settlement scheme covers proceedings before SEBI and the Securities Appellate Tribunal for stock brokers linked to algorithmic trading platforms.
• Notices were issued last year to over 120 brokerages, including Zerodha and Motilal Oswal, over their involvement with Tradetron.
• Regulation 9(f) of SEBI’s broker regulations prohibits partnerships with entities offering assured returns, triggering the inquiry into compliance.
• Brokers can apply for settlement between June 16 and September 16 by paying stipulated amounts and following procedures detailed in an upcoming FAQ.
• Firms that opt out of the scheme will continue to face full regulatory actions without access to expedited resolution.