Sebi does not want to take any chances with the high-speed, high-risk algorithmic trading. The market regulator has come out with an extensive set of guidelines that puts the onus on stock exchanges to regulate such trades. Sebi has also put in place additional safety measures including routing all algo trades via servers situated in India, report Sajeet Manghat and Ashmit Kumar of CNBC-TV18.
On March 9, a very apprehensive chairman of Sebi, UK Sinha, questioned the ability of the stock exchanges or the Sebi itself to regulate algo trade in India. From 200 microseconds, India now trades at 20 microseconds with a time-lag of 8 microseconds, but demands are that it still goes down.