India's capital market regulator, the Securities and Exchange Board of India (Sebi) is considering new regulations for avoiding freak trades in the country's stock markets following flash crash on the National Stock Exchange in the previous week.

UK Sinha, chairman, Sebi said, "Sebi has set up a group of experts that is looking at various aspects. Discussions with experts are taking place and some measures can be expected in foreseeable future to deal with flash crash situations."

He was speaking at the sidelines of Ficci's annual conference on capital markets on Friday. He pointed out that sebi is not in a hurry to change the existing risk management guidelines for the markets. The regulations seeking annulment of erroneous trades will ensure that such situations do not occur in the stock exchanges in the country.

Mr. Sinha said that the regulator's risk management guidelines have worked well since 2000 and thus the regulator aims to be cautious in bring any new structure in the regulatory framework for the capital markets. He said that the regulator will carry out consultations, stress testing and scenario building and other activities before forming new regulations.

He also said that the interest of retial investors is more important to the regulator than speedy execution and certain checks on algorithmic or HF trading.