Sebi chief urges stronger risk controls amid rise in algo, HFT trading

Sebi Chairman Tuhin Kanta Pandey warns that as algorithmic and high-frequency trading grow, intermediaries must balance speed with safety, ensure compliance, and protect investor trust

The rise of algorithmic and high-frequency trading brings efficiency but also demands robust risk controls, real-time monitoring and compliance safeguards, Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey said on Tuesday.

 

Speaking at the Morningstar Investment Conference India 2025, Pandey said rapid technological change, growing market interconnectedness and rising investor expectations have created fresh complexities for financial intermediaries.

 

“Intermediaries today navigate a landscape defined by rapid technological change, interconnected markets and rising stakeholder expectations,” he said.

 

He cautioned that while technology improves speed and access, it also magnifies risks.

 

“Firms must safeguard sensitive client data and critical