Indian Court Refers Proposed HFT Ban to Regulator

delhi-high-court
India is currently wrestling with emerging HFT activity in its markets.

Delhi High Court rules that Sebi must respond to retail action brought against automated trading practices.

The Delhi High Court has instructed the Securities and Exchange Board of India (Sebi) to respond to a petition that seeks to ban automated trading on the country's markets.

The Intermediaries and Investor Welfare Association lodged a petition with the court that accuses automated trading of discriminating against retail investors in favor of advanced brokers and participants. The court's ruling, given on Tuesday, instructs Sebi to reply in due course to the plea. The court also sent notices to the finance ministry, the National Stock Exchange, the Bombay Stock Exchange and the central bank, with a hearing set for 28 January 2013.

Sebi has recently warned over the effects of automated trading in its markets, and has long been critical of strategies such as high-frequency trading. The story was first reported by the Financial Times.

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