Regulator plans to crawl social media, 24/7

Markets regulator Sebi (Securities and Exchange Board of India) is planning to put in place a new system for crawling the internet and social media platforms like Twitter and Facebook for round-the-clock monitoring of market-moving developments.

The regulator is looking to rope in an expert independent agency for putting in place this new system, which may also be mandated to help Sebi expand its own presence on social media platforms.

The agency would be responsible for developing a system that will “crawl the digital media and social networking sites like Twitter, Facebook, websites of registered intermediaries, websites of associations of Sebi-registered intermediaries (Amfi or Association of Mutual Funds in India), blogs of advisors/investors, specific LinkedIn groups, news chatrooms, Bloomberg/Reuters chats, and capture and provide the information to Sebi daily on T+1 basis.”

T+1 refers to the settlement date of security transactions and denotes that the settlement occurs on a transaction date plus one day.

Highly sensitive and important information should be made available to Sebi with the least possible latency instead of on a T+1 basis.

In addition to website-based news feeds, information disseminated on channels like electronic media and print media, which may contain information about Sebi and Indian securities market, will also be monitored.

Additionally, the agency is required to carry out social media management activities on behalf of Sebi.

As part of social media management services, the agency would have to advise Sebi on the suitability of various social media platforms. It needs to create and maintain social media presence on behalf of the regulator.

Among other requirements, the agency needs to have a positive net worth and revenue of at least Rs 10 crore for each of past three financial years (April 1, 2013- March 31, 2016).

The agency needs to have an ability to handle development of web crawling service integrated with data extraction and analysis and should have been in existence in India since April 2012.

The agency, its promoters, directors, and key personnel should not have been held guilty or penalised by any court or authority.

In a notice, Sebi has invited Expression of Interest (EOI) from 'Web Crawling, Data extraction and Information Management' from independent agencies. The interested agencies can send their applications by August 10.