Mumbai, March 31
Capital market regulator Securities & Exchange Board of India (SEBI) has put in place rules for the use of sophisticated automated software to prevent systemic risks caused by algorithmic trading used by brokers.

"Based on recommendations of technical advisory committee (TAC) and secondary market advisory committee (SMAC), it has been decided to put in place broad guidelines for algorithmic trading in the securities market,'SEBI said in a notification.

It said the adoption of technology for trading in financial instruments has been on the rise over the past few years. Stock brokers as well as their clients are now making increased use of algo trading.

Algorithmic trading refers to orders on bourses that are generated using high-frequency, automated execution logic.

The capital market regulator said exchanges should ensure that all algorithmic orders, software driven automated order execution engines, are routed through broker servers located in India and have appropriate risk control mechanism emanating from algorithmic orders and trades.

"The minimum order level risk controls should include a price and quantity limit check. The price quoted by the order shall not violate the price bands defined by the exchange for security," SEBI said.

Exchanges also need to have in place a system to identify dysfunctional algos and should be in a position to advise members to shut down and remove any outstanding orders in the system that have emanated from such algos. — Agencies

Mumbai, March 31
The Bombay Stock Exchange Sensex was expected to gain 26 per cent this year as interest rate cuts bolster growth, but concerns about the government's finances and its political stability remain prominent risks, a poll showed.

The 30-share benchmark BSE index will likely rise to 19,500 points by the end of the year, after hitting 18,000 midyear, according to the median forecast from a survey of 24 investment houses in a poll conducted over the past week.

End-year projections for the index, which closed Friday at 17,404.20 points, ranged from 13,500 to 21,500. — Reuters

Kolkata, March 31
Finance Minister Pranab Mukherjee on Saturday defended the move to amend the Income Tax Act with retrospective effect following which UK's Vodafone may have to pay Rs 11,000 crore as tax for a buyout deal involving Indian business.

"First, the Supreme Court said in the Vodafone case that the intention of the legislature as to how it’s going to tax has to be clearly indicated," Mukherjee said at an interactive session organized by Calcutta Chamber of Commerce. "We came to the conclusion that we won’t be able to tax Indian assets purchased outside the country," he added.

UK-based mobile operator Vodafone purchased Hong Kong-based Hutchison's telecom business, which included operations in India, in 2007 for about US $11.2 billion.

Indian income tax authorities said the deal will attract tax on it and sought Rs 11,000 crore from Vodafone, which challenged the move.

The Supreme Court ruling held that Vodafone wasn't liable to pay tax on the deal, following which the government has proposed to amend the tax laws retrospectively to bring in the net such deals.

"I’ll now pose few questions. We will have to decide whether India will be a no tax country or India will tax ... If the answer is yes that it will be taxed, then whether to be taxed in India or at source of the company. Then comes the question how it is being protected from double tax avoidance agreement and tax exchange information in India", Mukherjee said.

The legal remedy lay in bringing clarificatory amendments and make clear the intention of the legislature, he added. — PTI

London, March 31
Nonresident Indian steel tycoon Lakshmi Niwas Mittal, chairman & CEO of ArcelorMittal, the world’s largest steelmaker, and his family continue to head the 2012 Asian Rich List despite their wealth coming down by 2 billion pounds sterling at £13.5 billion.

This is stated in the Asian Rich List, naming Britain's '101 Wealthiest Asians 2012' and brought out by EasternEye, a publication of the Asian Media & Marketing Group (AMG). The Rich List was officially released on Friday night by Ramniklal Solanki, CBE editor-in-chief, AMG, in the presence of Keith Vaz, MP, at the Asian Business Awards ceremony.

The Hindujas, whose activities span from transport to oil, have seen their fortune improve further with a wealth of £9.5 billion during the year, up £500 million, to finish second in the list.

Anil Agarwal, chairman of Vedanta Group, is third in the list with a fortune of £3.2 billion, down £1.3 billion from last year.

Swaraj Paul, chairman of Caparo and chancellor of Westminster and Wolverhampton Universities, is 7th in the list with a wealth of £675 million — up £75 million from last year.

According to the report, Paul has looked into the future and what he sees is carbon fibre, or "composites" to use the correct technical term. “Objects constructed today from steel could tomorrow be made from carbon fibre. Airbus uses a lot of carbon fibre parts and so does Boeing”, Paul said. — PTI