Synchronized Trading as Manipulative Device: A Critical Legal Analysis

Synchronized trading results in a deception of the market, and is extremely difficult to detect. The basic objective of this paper is to cull out the origin of screen-based trading and the principle of anonymity, as the pillars of the Indian securities markets. This paper also discusses the types of deceptive devices employed by parties to evade regulators in India. It also focuses on fairly determining the various grounds for the determination of synchronized trading in India. The factors in respect of synchronized trading have not been mentioned/ ascertained in India, which make its detection difficult. It is to be noted in this context that synchronized trading though has been used as a term by the SEBI freely, it lacks a particular description/ definition in the Indian context. In this light, the paper shall attempt at indicating those factors which may lead to a better identification and resolution of practices, termed as synchronized trading.