There has been heated debate on algorithm based trades. Amidst this debate, Rakesh Jhunjhunwala, an ace investor, has backed this kind of trading and has even raised questions on the need to regulate this form of trading.
Rakesh Jhunjhunwala even told reporters that he does not agree that there should be regulations for algorithm (algo) based trading. He also said that regulation of algo trading and norms to do the same should be brought in only in case of enough evidence of manipulation in the market. Rakesh Jhunjhunwala also said that any method of trading can be used by an investor. The method can be technical also but that does not mean that it is an incorrect method. He vehemently said that just because someone is doing algo trading, that investor should not be regulated and that regulations should not be there unless there is strong and solid evidence that the trading is being done to manipulate the stock market prices.