SEBI to tighten algo trade norms, warns against audit lapses

Mumbai, May 25 

SEBI today announced it will put in place stringent norms for high frequency trades along with higher penalties for misuse, initiate strong action against auditors for lapses and expressed hope that P-Note users will start directly investing in the Indian market.

The watchdog also plans to seek delisting of over 4,200 listed companies whose shares are not being traded, apart from having an online platform for sale and purchase of mutual funds.

As part of efforts to further strengthen the domestic markets and protect investor interests, the SEBI eyes more strong regulations for credit rating agencies that among others will require such entities to disclose reasons for their actions.

Concerned over misuse of the high-frequency or algo trade, SEBI Chairman UK Sinha said a strong set of norms will be in place in 3-4 months to ensure fair opportunity for trading entities.

The regulator will soon float a discussion paper in this regard.