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<h1>SEBI Enhances Algo Trading Rules: New Co-location Services, Free Data Feeds, and Stricter Surveillance for Stock Exchanges.</h1> The Securities and Exchange Board of India (SEBI) issued a circular to enhance the framework for algorithmic trading and co-location/proximity hosting in stock exchanges. Key measures include introducing Managed Co-location Services for smaller members, ensuring multiple vendors, and enhancing transparency by publishing detailed latency metrics. Stock exchanges must provide free Tick-by-Tick data feeds to trading members and adjust penalties for high order-to-trade ratios. Unique identifiers for algorithms are mandated for better surveillance, and testing requirements for software and algorithms are strengthened. Exchanges must implement these measures by specified deadlines and report progress to SEBI.