Sebi plans to bring 'congestion charge' to disincentivise algo
NEW DELHI: Markets regulator Sebi is considering a proposal to disincentivise algorithmic trading by traders with a 'congestion charge' for high volumes along with other restrictions.
The proposal which was made at a recent meeting of an expert panel is aimed at addressing concerns that highfrequency or algo traders have unfair access to the trading system of exchange.
Algorithmic trading or 'algo' in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade.
The issue is likely to be discussed at the board meeting of the Securities and Exchange Board of India (Sebi) this month, senior officials said.
Under the proposed norms, the regulator plans to impose a higher fee on traders who unnecessarily clog the trading systems with high number of orders, the officials said.
To strengthen the regulatory framework for algo trading and co-location facility, Sebi in 2016 had come out with a proposal to introduce resting time for order, random delays and random speed bumps, separate queues for co-location and nonco-location orders.
However, the proposals were not implemented due to opposition from market participants.
The co-location facility involves setting up servers on the exchange premises.
The speed bump mechanism involves introduction of randomised order processing delay of few milliseconds to orders.
Sebi had proposed to begin minimum resting time mechanism, wherein orders received by the stock exchange would not be allowed to be amended or cancelled before a specified time of 500 milliseconds is elapsed. Besides, it had proposed to eliminate 'fleeting orders' or orders that appear and then disappear within a short period of time.
As per the proposal, the regulator had planned to introduce separate queues and order-validation mechanism for co-lo orders and non-colo orders. NEW DELHI: Capital markets regulator Sebi on Thursday raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIS to $100 million across all currency pairs involving the Indian rupee.
The move will help entities engaged in forex transactions to maintain their currency risks in a better manner.
"Domestic clients/fpis may take long or short positions without having to establish existence of underlying exposure, up to a single limit of $100 million equivalent, across all currency pairs involving INR, put together, and combined across all the stock exchanges," Sebi said. The regulator has asked FPIS to ensure that their short positions at all exchanges across all contracts in foreign currency (FCY) and Indian rupee pairs do not exceed $100 million. NEW DELHI: Tata Steel on Thursday told NCLT that acceptance of Uk-based Liberty House's bid for Bhushan Power and Steel would amount to violation of the level-playing field in the resolution process.
The tribunal was hearing a plea filed by Liberty House challenging the rejection its bid for Bhushan Power and Steel on account of late submission. Liberty House had moved the NCLT on February 26.
Appearing for Tata Steel, senior advocate Abhishek Manu Singhvi on Thursday submitted before the National Company Law Tribunal (NCLT) that Liberty House has also hid facts in their petition filed before it.
"Acceptance of Liberty bid will violate level playing field," Singhvi said.
Citing some emails, he further said that Liberty House was in touch with the Insol- vency Resolution Professional (IRP) of Bhushan Power and Steel and can not say that it was not aware about it.
Singhvi said maximisation of bids has to be seen within parameters of rules.
Tata Steel would continue its arguments before the principal bench of NCLT on Friday.
Earlier on March 13, NCLT had asked the Committee of Creditors of Bhushan Power and Steel not to hold their meeting that was scheduled to finalise the highest bidder for the debt-ridden firm.
The COC last month rejected Liberty House's bid to acquire Bhushan Power and Steel Ltd, leaving Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm.
Liberty House has submitted before the NCLT that IRP rejected its bid to acquire Bhushan Power and Steel without even opening the seal of its offer. NEW DELHI: In its journey to acquaint increasing number of people with various steel usages for eventually boosting domestic steel consumption, Steel Authority of India Ltd. (SAIL) is organizing series of workshops and conferences titled "SAIL Structurals - The future of Steel Design” across the country with the objective of promoting Structurals, specially the user friendly Parallel Flange Sections. The recent one in the series was organized at Dehradun on Thursday.
Structurals are popularly being used worldwide in various constructions as they help in erecting lighter structures facilitating easier fabrication, lesser construction time, economical, safer and sturdy building and at the same time adding elegance to the design.