India, Feb. 5 -- The Securities and Exchange Board of India (SEBI) has mandated stock exchanges to empanel algorithmic trading providers and has also defined rules for using application programming interfaces (APIs), according to a Business Standard report.

Algorithmic trading, also known as algo trading, is a method of executing trading orders by providing a predefined set of rules to a computer program.

This helps in placing share orders at a speed and frequency not possible for human traders.

Algo trading is already prevalent in India among both institutional as well as retail investors. However, existing regulations had several loopholes, posing risks to investors, according to a Business Standard report.

As a result, The Brokers'...