<h1>SEBI Sets New Guidelines for Algorithmic Trading: Risk Controls, Economic Disincentives, and IPO Price Volatility Management.</h1> The Securities and Exchange Board of India (SEBI) has established guidelines for monitoring Algorithmic Trading in the Indian stock market. Key measures include ensuring stock exchanges have systems to manage trading loads, implementing economic disincentives for high order-to-trade ratios, and instituting risk controls to manage algorithmic trading risks. Exchanges must identify and address dysfunctional algorithms, and brokers must obtain prior permission for algorithmic trading, demonstrating adequate risk controls. Additionally, SEBI has introduced a pre-open call auction mechanism for IPOs to manage price volatility on listing days. This information was provided by the Minister of State for Finance in a Lok Sabha session.