SEBI Sends Shockwaves! Over 120 Stockbrokers Hit with Show Cause Notices for Ties to Algo Platform Tradetron

SEBI, the Securities and Exchange Board of India, has sent show cause notices to over 120 stockbrokers for their continued association with the algo trading platform, Tradetron, according to a report.

Among the well-known brokerage firms that received these notices are Motilal Oswal Financial Services, Zerodha, 5Paisa Capital, and Bajaj Financial Securities, as reported by NDTV Profit.

ADVERTISEMENT

Be part of our community by downloading and registering on the Angel One app. Your support helps us keep delivering quality content.

SEBI issued these notices as part of a broader investigation into Tradetron and similar algo platforms. These brokers reportedly kept working with Tradetron even after telling SEBI they had ended their partnership with the platform, the report noted.

Tradetron was promoting algo trading strategies on its website, claiming guaranteed returns, which SEBI flagged. SEBI’s 2022 circular bans brokers from partnering with platforms that offer guaranteed returns.

The report states that 122 brokers were found violating this rule because they still had their APIs connected to Tradetron.

The list of brokers who received SEBI’s notice includes well-known names such as Aditya Birla Money, Arihant Capital Markets, Anand Rathi Share & Stock Brokers, Angel One, HDFC Securities, ICICI Securities, IIFL Securities, and many others.

Other firms like JM Financial Services, Kotak Securities, Paytm Money, Phillip Capital, Sharekhan, and SMC Global Securities also received SEBI’s show cause notice, as per the report.