For years, many retail investors and traders had missed the opportunity to trade on the best prices available due to the pre-programmed trading software of stockbrokers which worked in stock exchange order rather than giving best available prices available on other exchange to execute trades. Regarding this, the market regulator SEBI had already issued guidelines earlier, but the several brokers never paid any attention to them as no ‘no compliance’ action was initiated against them.
Now, the market regular once again asked the brokers to execute the trades at the best available price and mentioned it as the right of trading clients. It means if a stock is available at Rs. 100 on a particular exchange and Rs. 90 at another exchange at the given time, the broker will have to buy it at the best available price irrespective of exchange.
Securities & Exchange Board of India (SEBI) said that brokers cannot have pre-programmed parameters that compromise on the fundamental principle of the stock market.