Sebi adopts new tool to track violations

Market regulator the Securities and Exchange Board of India (Sebi) today said it has implemented a new tool for speedy analysis of data and identification of possible violations like insider trading.

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

"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 have 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, the regulator said.

Sebi has signed a contract for this project designed and to be delivered by TCS, as the system integrator. The rollout of the project took place today with Chairman C B Bhave receiving the first set of reports from the system.

The new tool is expected to be used extensively by Sebi in its various investigations into possible irregularities in the market dealings.