The Hindu Business Line : SEBI to install new surveillance software today

Easy access to data
Software allows SEBI to integrate market transactions across stock exchanges every day.
To also incorporate both cash, derivative segments besides depository institutions.

Mumbai , Nov. 30

Remember the market crash in May 2004, in the wake of the Congress-led UPA Government assuming office at the Centre? Just the process of gathering data on `who-did-what' on that fateful day would have taken the Securities and Exchange Board of India (SEBI) quite a while as it would have had to be obtained from the different stock exchanges and that too across both cash and derivatives segments of the market. Then of course, the data from depository institutions would have to be superimposed on the trading data from the stock exchanges.

Time saver

Now, the new surveillance software to be implemented by SEBI with effect from December 1 promises not only to cut short the time that would be needed to compile the basic data but would also be versatile as to the scope of information that it can dredge out from the welter of data available to it.

This was revealed by SEBI in a presentation made to the media here today.

The new software, called the Integrated Market Surveillance System, allows SEBI to integrate at the end of the day, market transactions across stock exchanges, for now the BSE and the National Stock Exchange. It would also incorporate in its scope, both the cash and derivative segments besides those of the depository institutions and their participants.

More importantly, it would no longer have to depend on the market participants to furnish the data for whatever investigations it may choose to undertake.

The software allows SEBI to directly obtain data from the mass of data currently estimated to run into 3 to 4 gigabytes per day by employing certain filter criteria at the level of a scrip or a market participant for any abnormal features of trading.

SEBI has said that based on its experience of regulating the domestic market, it has constructed 29 types of filters that would help identify and investigate potential cases of fraudulent trading practices in the market.

Mr G. Anantharaman, whole-time member of SEBI, clarified in the course of his briefing of newspersons on the occasion that the system is not intended to substitute the self-regulatory function of stock exchanges but rather, help SEBI in its oversight role in the stock market.

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