Regional Sales Head

High-speed trader AlphaGrep raises ₹200 crore via bonds after RBI curb. The Mumbai-based firm is raising ₹200 crore ($21 million) through bonds with a maturity of about one year and a 10.5% coupon, payable quarterly. The sale, among the first by an Indian speed traders, signals a funding shift for an industry that has become a major force in the country's derivatives markets | Image: Bloomberg By Divya Patil AlphaGrep Securities Pvt., one of India's largest high-frequency trading firms, is turning to the bond market for funding after the regulator tightened banks' exposure to trading firms that use their own capital. The Mumbai-based firm is raising ₹200 crore ($21 million) through bonds with a maturity of about one year and a 10.5% coupon, payable quarterly, according to a person familiar with the matter. The proceeds will be used to place margin deposits with stock exchanges and meet working-capital needs, the person said, asking not to be identified because the details are private. The sale, among the first by an Indian speed traders, signals a funding shift for an industry that has become a major force in the country's derivatives markets. Reserve Bank of India's curbs on bank exposure are pushing proprietary traders away from loans and toward bonds and commercial paper. AlphaGrep had ₹2,890 crore of bank guarantees outstanding as of June 30, according to Crisil Ratings. Guarantees deployed in its proprietary trading business are expected to be gradually phased out as they expire over the coming year and replaced with commercial paper and non-convertible debentures, the ratings company said last month. A representative for AlphGrep didn't immediately respond to a request for comment. The funding shift comes as India's HFT firms adjusts to a tougher environment after years of rapid growth. Regulatory restrictions have weighed on derivatives volumes even as competition among firms for quantitative and artificial-intelligence talent remains intense. AlphaGrep relies on internally developed statistical models to identify trading opportunities and generate signals. Trades are executed automatically according to predetermined parameters, backed by real-time automated risk-management system, according to Crisil.

AlphaGrep Mutual Fund launched its first retail offering, the AlphaGrep Multi Asset Allocation Fund, on 6 January 2026. The New Fund Offer runs until 20 January 2026, with a minimum investment of ₹500. The open-ended hybrid scheme uses algorithmic models to allocate investments across equity, debt, and commodities. Fund manager Ravneet Singh employs multi-factor mathematical modelling to rebalance portfolios dynamically across three asset classes. The scheme maintains 35-75% in equity, 10-50% in debt, and 10-25% in gold and silver ETFs. It benchmarks against a composite index: 35% NIFTY 200 TRI, 45% NIFTY Composite Debt Index, and 20% MCX iCOMDEX Composite Index. AlphaGrep Group oversees roughly $1 billion globally. The fund carries a "very high" risk designation due to exposure to equity derivatives and commodity contracts.

AlphaGrep has received final approval from India's Securities and Exchange Board to launch its mutual fund business, marking the quantitative trading firm's entry into retail asset management after 16 years in quantitative trading. The firm plans to introduce systematic equity strategies and rules-based hybrid products through upcoming new fund offers in the coming months. AlphaGrep currently manages over ₹8,500 crore globally as of 28 February 2026 and is amongst the largest participants by volume on domestic exchanges. The mutual fund arm will operate under AlphaGrep Investment Management, which already manages over ₹2,000 crore across alternative investment funds and portfolio management services platforms. CEO Bhautik Ambani will lead the new business, focusing on quant-driven strategies powered by mathematical models, AI and machine learning.