Sebi is looking to put in place new and advanced software tools to help in its monitoring of mutual funds and for sharing of information with other regulators.

SEBI or Securities and Exchange Board of India has recently made some announcements for increase in surveillance of brokers, investors in India. As per the latest announcements, SEBI has commissioned 7 most sophisticated and powerful technology companies to create the required technologies for high-end surveillance.

SEBI is the regulator for securities market in India, and via SEBI ACt 1992, it has been given statutory powers to regulate, monitor and scrutinize the securities market in India.

Which companies have been asked to create and build technology for surveillance? And what will they monitor?

The Securities and Exchange Board of India (Sebi) has shortlisted seven firms, including Wipro Ltd and L&T Infotech Ltd, to build a private data storage cloud, automate its inspection of brokers and enhance analytics capabilities, as the regulator is eyeing a technological leap in surveillance and investigation functions. Other firms on the shortlist are Accenture Solutions, Capgemini Technology Services India, Hewlett Packard Enterprises (India), EIT Services India and Tharavu Technologies.

In a statement, SEBI said, “Bidders have been shortlisted for further process,”

Surveillance Of Brokers, Investors – The SEBI Way.
If you see in recent years there are lots of malpratices and fraud activities like insider trading been carried out on a large scale. So as a result its real very important to examine and bar such activities for that SEBI needs a proper survelliance systems.
As mentioned in their bidding documents, SEBI is primarily building a new latest and high end technology platform, which will allow them to put suspected brokers and investors into surveillance, and monitor their trading activities.

SEBI has asked these shortlisted IT companies to create some of the most advanced software, tools and surveillance mechanisms, which includes:

To build and Create a private Cloud for Securities and Exchange Board of India.
This private Cloud technology will boost and enchance infrastructure, storage and computing capability for all future SEBI surveillance campaigns.
Cutting edge Analytical processing of real-time data and information, based on Big Data analytics.
Advanced Tools to examine and monitor the flow of funds in mutual funds investments, and equities in the share market.
Formulating quick contigency mechanism for exchanges during natural disasters, and ensuring business continuity.
Using Big Data and Artificial Intelligence to monitor and stop market manipulations, and understand how unethical brokers and agents/investors can manipulate the stock prices
SEBI also planning to build a real time information exchange platform wherein companies can make their official announcements in live market, so that rumors cant float and negatively impact the market sentiments or stock prices.
Finding the real culprit who are spreading rumors released by few brokers to manipulate the market
Greater use of Articial Intelligence, Big Data Analytics will help to understand the market, and stop all unethical mediums and malpractices.
An automated process to authenticate brokers and investors, and to ensure that only geniune traders are allowed to invest and trade in market.

SEBI’s Future Plans

As per SEBI’s 2017-18 annual report, they had mentioned about formulating high-tech surveillance for brokers and investors, which will help them to maintain the integrity of investment markets.