Algo-based Trading in the Indian Markets: Analysing in Context of SEBI Regulations
Lead author · Corresponding
Chandrarupa Chatterjee
Professor at SVKM's NMIMS School of Law, Navi Mumbai, India
Abstract
Algorithmic trading has become a major part of the trading system in the stock market in India. With the help of technology, the system is growing and getting developed. The advanced versions of the algorithmic system are High-Frequency Trading and CO-Location trading facilities. There have been guidelines issued by SEBI proving direction to the brokers and stock exchanges for operating algorithmic trading. The problem in this area is as to its proper implementation of the regulations. The evidence of the failure of proper implementation of the regulation can be found in the co-location scam. SEBI is taking initiatives to eliminate those problems.
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