The key weakness of the circular is the lack of the robust safeguards against the manipulative algorithmic practice, specifically spoofing which is a tactic where large, fake orders are placed to deceive the market.

SEBI has shown a number of apprehensions regarding retail investors getting involved in algo trading, citing possible manipulation of the market, unfair access to market information, and excessive volatility.

Authors analyse the recklessness standard introduced by SEBI through 2022 amendment relating to market manipulation through social media.