Sebi decides to upgrade software for fraud detection

Aiming to strengthen surveillance and protecting investors, Sebi has decided to upgrade its business intelligence gathering mechanism used for detecting manipulative activities in the capital markets.
Securities and Exchange Board of India (Sebi) in 2011 had put in place Data Warehouse Capacity and Business Intelligence Report Capacity -- a software tool used for speedy analysis of data and identification of possible violations like insider trading and money laundering in the stock markets.
Looking to upgrade this tool at its data centres in Mumbai and Chennai, Sebi has invited bids from agencies to work on the design, supply, installation, configuration and maintenance of the system.

In a tender notice, the market regulator said that it "envisages field upgradeable architecture of the system to handle the future requirements extending to twice the current load with the same level of performance".
While the augmented capacity is proposed to be installed at centres in Mumbai and Chennai, Sebi said: "It is anticipated that the offered system may be installed in other data centres, if the existing data centres can't accommodate the new systems."
As per Sebi, the eligible bidder is required to have "the ability to supply, install, design and implement and maintain the required hardware, operating system, application software (security application, databases) and utilities".

"The bidder shall ensure the necessary network and firewall components with adequate security are included in the augmented solution to allow smooth connectivity between existing system and augmented/upgraded system," it added.

The bids have to be submitted to Sebi by end of December, this year.
During 2013-14, 108 new cases were taken up for probe by the market regulator and 120 cases were completed.
Of the 108 cases taken up for investigation, over 60 per cent pertained to market manipulation and price rigging, while the insider trading and takeover violation cases accounted for 12 per cent and 5.6 per cent respectively.

Data Warehouse primarily collects transaction and master data from exchanges (NSE, BSE, MCX-SX, USE) and depositories (NSDL, CDSL) on a daily basis and generates reports for users in a highly time-efficient manner.