SEBI plans platform for real-time surveillance

Equity Right


SEBI plans platform for real-time surveillance.

The Securities and Exchange Board of India (SEBI) has a very important role in the regulation of all the capital market players. Its main function is to protect the interest of market investors. SEBI imposes various rules and regulations in order to develop the capital markets.

SEBI upgrades surveillance to AI:

Meanwhile, SEBI is attempting to establish a real-time surveillance mechanism, controlling artificial intelligence. It will help SEBI build a platform to collect and analyse data, and mark irregular and doubtful transactions taking place during trading hours.

 Exchange officials believe that such a structure is filled with the risk of disruption in market balance. The Indian Capital market is certainly benefitted by having a real-time surveillance system. SEBI should provide a transparent policy. These policies should defines all the circumstances in which it would take necessary measures during mid-market hours.

Similar to the entry the brokers get through collocation, this new platform will have the connection to stock exchange servers. The only difference in SEBI’s system is access to the details as it also captures terminal IDs and codes of clients in each trade.

Meanwhile, it is assumed that this growth will get importance as SEBI will be allowed to step in even in the mid-market hours. Currently, SEBI is dependent on the data which is sent by Stock Exchanges only when the trade ends.

Technology to ease manpower: 

The SEBI cannot see the data during the decisions immediately with the existing SEBI interface processing exchange data. SEBI officials have to manually analyse all the thousand red flags that are thrown every day in this system. On the other hand, the new system can analyse these thousand red flags in a better way. It will significantly deduct the overuse and reduce the burden of manpower.

Also, this is not the first time that SEBI has considered making such a system. SEBI made a similar proposal in 2015, but it could not be executed due to limitation of technology. In recent years, SEBI has bought a lot of new technologies. The regulator has also made definite teams to deal with large data and artificial intelligence.

This application enables SEBI to be in the league of selected few markets globally who also use these real-time surveillance systems. Japan’s Financial Services Agency, the China Securities Regulatory Commission, etc. have such real-time access to information. Once the system is started, SEBI has decided to use it as a shield application and make different and specific sections for each section of the market.

SEBI plans platform for real-time surveillance.

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