Follow Us:
Friday, May 27, 2022

Sebi launches new tool to identify manipulators

Manipulators beware. The Securities and Exchange Board of India,which has launched an investigation into 25 entities,including brokerage firms,FIIs and mutual funds,on Monday implemented a new tool for speedy analysis of data and identification of possible violations like insider trading and front running.

Written by ENS Economic Bureau | Mumbai |
February 15, 2011 3:19:11 am

Manipulators beware. The Securities and Exchange Board of India (Sebi),which has launched an investigation into 25 entities,including brokerage firms,FIIs and mutual funds,on Monday implemented a new tool for speedy analysis of data and identification of possible violations like insider trading and front running.

The new tool,named Data Ware Housing and Business Intelligence System (DWBIS),will significantly enhance Sebi’s investigation and surveillance functions,the regulator said.

“The Data Warehousing tool will allow Sebi to exploit the power of modern technology in terms of computation and speed of data analysis,” it added. DWBIS will also allow Sebi,along with the similar tools available with the exchanges and depositories,to expedite the investigation and completion of its quasi judicial orders arising from cases of violations pertaining to the securities market. Sebi said the new tool in next one year will host “pattern recognition algorithms” to monitor the trade and order data received by Sebi in order to identify networked clients who possibly collectively indulge in violations of securities laws. The tool has software functions aimed at addressing “crimes like insider trading,front running,etc,” Sebi said. The existing databases across departments of Sebi will get linked with this new tool in a way to enable the efficient utilisation of the stored data for Sebi’s investor protection and regulatory roles,it said.

Meanwhile,Sebi’s initial investigations have revealed the possibility of at least three ‘bear cartels’ operating in the stock market and Sebi has decided to seek inputs from the exchanges and various market entities on trading patterns of the affected stocks over past three months. These cartels are suspected to have manipulated,in concert or separately,share prices of over 100 companies,including the blue-chips,over the past few months. Most ‘victims’ are from mid-cap and small-cap segments. The BSE benchmark Sensex has fallen by over 3,000 points,or more than 15 per cent,since its record closing high of about 21,000 points on November 5.

Best of Express Premium
What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapi...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium
Touching The Sky : SIMS, Pune Alumni On A Path To Make A DifferencePremium

Entities under the scanner include people working with certain brokerage firms,FIIs and mutual funds,while a few others are suspected to be related to the employees of these firms.

Latest Comment
View All Comments
Post Comment
Read Comments

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard

Featured Stories

Shah Rukh Khan reveals wife Gauri Khan's rules inside their home Mannat: ...
Shah Rukh Khan says he has TVs worth Rs 30-40 lakh in Mannat, fan reacts,...
IPL 2022 Qualifier 2, RR vs RCB Highlights: Jos Buttler's century carries...
Tanuja says film industry now more 'corporate' instead of being a family:...
Two Cannes red carpet looks, one gorgeous Deepika Padukone. No surprise t...
Advertisement
Advertisement
Advertisement
X