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 Sebis 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 Sebis investor protection and regulatory roles,it said.
Meanwhile,Sebis 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.
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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.
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