India’s market regulator is to launch a review of high-frequency trading activity in the county, which will include recommending a repeal of the country's Securities Transactions Tax – paving the way for a huge rise in high-volume trading on the subcontinent.

Announcing the review to local media, Securities and Exchange Board of India chairman Upendra Sinha said he was hopeful the government would consider repealing its 2.5% levy on all intraday cash trades, citing it as a drag on equity volume growth. The tax is similar to the stamp duty levied on UK equity and derivative trades, though far higher than the UK's 0.5% charge.