Motilal Oswal Financial Services has resolved its involvement with certain algorithmic trading platforms by settling proceedings with the Securities and Exchange Board of India (SEBI) for a payment of ₹1,00,000.
SEBI’s investigation revealed that 122 stock brokers, including Motilal Oswal Financial Services, had their Application Programming Interfaces (APIs) integrated with algo platforms offering guaranteed returns or consistent profits. In response, SEBI introduced the ‘Settlement Scheme on Association with Certain Algo Platforms, 2025’ to address these violations and reduce regulatory burdens.
Motilal Oswal Financial Services took advantage of this scheme to settle pending enforcement proceedings, which were initiated due to their association with algo platforms. The company submitted the necessary details and paid the settlement amount through SEBI’s online platform.
The settlement order, issued by SEBI on March 17, 2026, ensures that no further action will be taken against the company for these defaults. The order also states that any proceedings already initiated will not continue against the applicants listed in Annexure A of the order.
Motilal Oswal Financial Services has confirmed that it has taken corrective steps to address SEBI’s observations and is no longer associated with the algo vendors in question. The company also assured that the settlement has no material impact on its financial, operational, or other activities.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).