The Securities and Exchange Board of India (SEBI) will soon be coming out with a new set of guidelines to curb the very high order-to-trade ratio taking place in algorithm trading. Chairman UK Sinha told this to reporters after a function yesterday. He said that SEBI had recently come out with a discussion paper on algorithm trading during an international seminar and all arguments in favour of algo trading have strengthened the fact that it provides liquidity. He said that more the liquidity in the system, lesser are the chances of any manipulation. But various instances across the globe and within the system have shown that they add up to the exit mechanism. So the liquidity dries faster than in the open trade.Mr Sinha said that Sebi provided for higher penalties if there was very high order/trade ratio which means people are placing orders without any intention of executing those trades.