SEBI’s Adjudicating Officer issued an order against Samco Securities Limited (Registration No. INZ000002535) for alleged violations in connection with TradeTron (TT) and other algo trading platforms. Samco was found to be associated with TT, a platform that facilitated algorithmic trading and was observed to display strategies offering assured returns — a practice prohibited under SEBI regulations. The violations pertain to SEBI Circular dated September 02, 2022 and the SEBI (Stock Brokers) Regulations, 1992.

Key Points

• Samco Securities Limited is a SEBI-registered stock broker (PAN: AAICS2455A, Reg. No. INZ000002535).
• SEBI examined the association of stock brokers with TradeTron (TT), an algorithmic trading SAAS platform operated by Neutrino Trading Pvt. Ltd., Mumbai.
• TT allowed users to create, subscribe to, and run automated algo strategy bots; strategy creators charged fixed monthly fees, profit-sharing fees, or a combination.
• SEBI observed that certain algo strategies on TT’s website offered assured/guaranteed returns, which is a regulatory violation.
• Samco was alleged to have violated Clause 4.2 of SEBI Circular SEBI/HO/MIRSD/DOP/P/CIR/2022/117 dated September 02, 2022.
• Additional violations alleged under Clauses A(2) and A(5) of Schedule II read with Regulation 9(f) of SEBI (Stock Brokers) Regulations, 1992.
• Show Cause Notice (SCN Ref. No. SEBI/HO/EAD-8/AS/RM/31641/1/2024) was issued on October 08, 2024.
• The Adjudicating Officer was appointed on May 20, 2025 following transfer of the erstwhile AO (originally appointed June 18, 2024).
• Inquiry and penalty proceedings initiated under Section 15HB and Section 15-I of the SEBI Act, 1992.

Regulatory Changes

No new regulatory changes are introduced by this order. The order enforces existing requirements under:

• SEBI Circular SEBI/HO/MIRSD/DOP/P/CIR/2022/117 dated September 02, 2022 (Clause 4.2) — governing stock broker obligations with respect to algo trading platforms.
• SEBI (Stock Brokers) Regulations, 1992 — Schedule II, Clauses A(2) and A(5) read with Regulation 9(f), relating to broker conduct and due diligence standards.

Compliance Requirements

• Stock brokers must not associate with or facilitate access to algo trading platforms that offer or display assured/guaranteed return strategies.
• Brokers are responsible for conducting due diligence on third-party algo platforms with which they are associated.
• Brokers must ensure compliance with SEBI Circular dated September 02, 2022, particularly Clause 4.2 regarding algo platform associations.
• Brokers must adhere to the code of conduct under Schedule II of SEBI (Stock Brokers) Regulations, 1992.

Important Dates

• June 18, 2024: Original Adjudicating Officer appointed.
• October 08, 2024: Show Cause Notice issued to Samco Securities Limited.
• May 20, 2025: New Adjudicating Officer appointed following transfer of erstwhile AO.
• March 25, 2026: Date of this adjudication order (Order/JS/YK/2025-26/32258).

Impact Assessment

This order has moderate impact primarily on stock brokers engaged with or considering engagement with third-party algorithmic trading platforms. It reinforces SEBI’s stance that brokers cannot disclaim responsibility for the conduct of algo platforms they are associated with, particularly where assured returns are advertised. The order signals continued regulatory scrutiny of the algo trading ecosystem in India, especially platforms like TradeTron that operate on a subscription/profit-sharing model. Broader market impact is limited, but compliance teams at brokerages should review their third-party algo platform relationships against the September 2022 SEBI Circular.