Sebi set to tackle cyber security breaches, deploy data analytics

Markets regulator Sebi will explore new initiatives to tackle the challenge posed by cyber security breaches happening globally as it gears up to deploy data analytics and new-age technologies for the marketplace while following necessary data privacy requirements, its chairman Ajay Tyagi has said.

Besides, the regulator intends to strengthen the algorithmic trading framework to make the capital market more fair, equitable and transparent, while there are plans underway to introduce more commodity options contracts and to put in place new guidelines for index products, Tyagi said in his annual message.

Going forward, the Sebi will continue its on-going process of reforms in the primary market to improve issuer and investor confidence, he added.

Noting that incidents of cybersecurity breaches pose a major challenge to market participants across the globe, Tyagi said, "to deal with this challenge, Sebi will explore the scope for the cyber security initiatives and also look into the operational modalities of implementation".

In addition, the regulator will examine aspects relating to data privacy requirements and necessary eco-system for encouraging applications of new technologies in capital market would be facilitated.

"Sebi would also endeavour to deploy data analytics and new generation technologies to understand and handle various challenges in the market," Tyagi said.

He said that integration of commodities and securities derivative markets is being actively planned for further streamlining and development of the secondary market.

"In this direction, there are plans to consider more commodity options contracts to be launched besides working on guidelines for index products," he added.

The exchanges have been allowed to integrate commodity and equity derivatives from October 1 in order to boost participation.