SEBI's new draft rules propose extending Direct Market Access to all investors, introducing unified approval processes for Smart Order Routing, and tightening technology and disaster recovery standards for India's equity market infrastructure.
- Direct Market Access extended to all investor categories
- Single application portal proposed for Smart Order Routing approval
- Enhanced backup, cybersecurity, and algorithmic trading rules introduced
What happened
On June 22, 2026, SEBI published a consultation paper proposing comprehensive revisions to the technology and operational framework governing stock exchanges, clearing corporations, and depositories in India. A key highlight is the expansion of Direct Market Access (DMA) to all categories of investors, allowing direct order placement through brokers' systems without manual intervention, a facility previously limited to institutional clients.
The draft also includes proposals to consolidate multiple existing IT-related provisions into a single framework and introduces reforms targeting algorithmic trading, audit trails, disaster recovery, and cybersecurity. SEBI has opened the consultation for public comments through July 13, 2026.
Why it matters
By extending DMA beyond institutional investors, SEBI aims to democratize market access, increasing efficiency and reducing intermediaries in order placement. This change potentially lowers barriers for various investors and enhances market liquidity and transparency. Investments managers would no longer require SEBI registration when acting on behalf of clients, although accountability remains with clients themselves.